Which of the following statements are correct about partnership:-
(A) Each partner carrying on the business is the principal as well as the agent for all the other partners
(B) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner
(C) If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm are to be shared equally by partners
(D) Interest on partner's loan is to be given @ 12% p.a., if the deed is silent about the rate
Choose the correct answer from the options given below:
Which of the following statements are correct about partnership:-
(A) Each partner carrying on the business is the principal as well as the agent for all the other partners
(B) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner
(C) If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm are to be shared equally by partners
(D) Interest on partner's loan is to be given @ 12% p.a., if the deed is silent about the rate
Choose the correct answer from the options given below:
Solution
Let me analyze each statement according to the provisions of the Indian Partnership Act, 1932:
Statement (A): Each partner carrying on the business is the principal as well as the agent for all the other partners
This is correct. This is a fundamental characteristic of partnership. Each partner acts as a principal for their own interests and simultaneously acts as an agent representing all other partners in business dealings.
Statement (B): If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner
This is incorrect. When the partnership deed is silent about interest on drawings, no interest is charged on partner's drawings. Interest on drawings is charged only when specifically mentioned in the partnership deed.
Statement (C): If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm are to be shared equally by partners
This is correct. As per Section 13(b) of the Indian Partnership Act, 1932, when the deed is silent about profit sharing ratio, all partners share profits and losses equally, regardless of their capital contributions.
Statement (D): Interest on partner's loan is to be given @ 12% p.a., if the deed is silent about the rate
This is incorrect. As per Section 13(d) of the Indian Partnership Act, 1932, when the deed is silent about the rate of interest on partner's loan, interest is allowed at 6% p.a., not 12% p.a.
Therefore, only statements (A) and (C) are correct.
Correct Answer: Option 4
Related questions:
2025: 31 May Shift 1
2025: 15 May Shift 1
2026: 12 May Shift 1
2025: 27 May Shift 1