Q.21. Which of the following is correct? The important provision affecting partnership accounting, i

Q: What is the correct answer for CUET UG Accountancy Q21?

The correct answer is C. According to the Indian Partnership Act, 1932, in the absence of a partnership deed: Profit sharing ratio: Equal among partners, not in capital ratio. Interest on capital: Not allowed unless agreed upon. Interest on drawings: Not charged unless agreed upon. Interest on loan by a partner: Allowed at 6% per annum, not 16%.

Q: Q.21. Which of the following is correct? The important provision affecting partnership accounting, in the absence of a partnership deed is:

The correct answer is C. According to the Indian Partnership Act, 1932, in the absence of a partnership deed: Profit sharing ratio: Equal among partners, not in capital ratio. Interest on capital: Not allowed unless agreed upon. Interest on drawings: Not charged unless agreed upon. Interest on loan by a partner: Allowed at 6% per annum, not 16%.

Q: What are the options for this CUET UG Accountancy question?

A. Profit Sharing Ratio: If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm are to be shared by partners in their capital ratio. · B. Interest on Capital: Partner is entitled to claim higher interest on the amount of capital contributed by him in the firm as a matter of riigh. · C. Interest on Drawings: No interest is to be charged on the drawings made by the partners, if there is no mention in the Deed. · D. Interest on Loan: If any partner has advanced loan to the firm for the purpose of business, he/she shall be entitled to get ap interest on the loan amount at the rate of 16 per cept per annum

Question

Q.21. Which of the following is correct? The important provision affecting partnership accounting, in the absence of a partnership deed is:

FirstInTest · Accepted Answer

According to the Indian Partnership Act, 1932, in the absence of a partnership deed: Profit sharing ratio: Equal among partners, not in capital ratio. Interest on capital: Not allowed unless agreed upon. Interest on drawings: Not charged unless agreed upon. Interest on loan by a partner: Allowed at 6% per annum, not 16%.

Answer

Profit Sharing Ratio: If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm are to be shared by partners in their capital ratio.

Answer

Interest on Capital: Partner is entitled to claim higher interest on the amount of capital contributed by him in the firm as a matter of riigh.

Answer

Interest on Drawings: No interest is to be charged on the drawings made by the partners, if there is no mention in the Deed.

Answer

Interest on Loan: If any partner has advanced loan to the firm for the purpose of business, he/she shall be entitled to get ap interest on the loan amount at the rate of 16 per cept per annum

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