Partnership

Accounting

Medium

common

Which combination of statements are false about partnership-

(A) Interest on partner's loan is to be given @ 12% p.a. If the deed is silent about the rate.

(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) Methods of settlement of dispute among the partners can't be part of the partnership deed.

(D) Each partner carrying on the business is the principal as well as the agent for all the other partners

Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

✅ Correct Option: 2

Let me evaluate each statement based on the Indian Partnership Act, 1932:

Statement (A): Interest on partner's loan @ 12% p.a. if deed is silent

According to the Partnership Act, when the deed is silent, interest on partner's loan is allowed at 6% p.a., not 12%. This statement is FALSE.

Statement (B): Interest @ 6% p.a. on drawings if deed is silent

As per the Partnership Act, when the deed is silent, no interest is charged on drawings. Interest on drawings is charged only when specifically agreed upon in the partnership deed. This statement is FALSE.

Statement (C): Methods of dispute settlement can't be part of partnership deed

Partnership deeds commonly include arbitration clauses and methods for settling disputes among partners. Such provisions are perfectly valid and frequently included. This statement is FALSE.

Statement (D): Each partner is principal as well as agent

This is a fundamental principle of partnership law. Every partner acts as an agent of the firm (and other partners) for business transactions, while simultaneously being a principal (owner) of the firm. This statement is TRUE.

The false statements are (A), (B), and (C).

Correct Option: 2

2025: 14 May Shift 1

Amitabh and Babul are partners sharing profits in the ratio of 3:2, with capitals of Rs. 50,000 and Rs. 30,000 respectively. Interest on capital is agreed @ 6% p.a. Babul is to be allowed an annual salary of Rs. 2,500. Manager is to be allowed commission Rs. 5,000. Amitabh has also given a loan on April 01, 2019 of Rs. 50,000 to the firm without any agreement. During the year 2019-20, the profits earned is Rs. 22,250. What amount of profit will be transferred to Profit and Loss Appropriation account :

2026: 29 May Shift 1

If partnership deed is silent about the interest on capital contributed by the partners in the firm, then ......... on the contributed capital will be paid.

2025: 2 June Shift 2

Reconstitution of partnership does not involves

2025: 27 May Shift 1

Calculate interest on drawing if Ram withdrew Rs. 3,000 per month at the beginning of each month for the whole year, if interest on drawing is charged @ 9 % per annum.

2026: 29 May Shift 2

Varun and Karan are partners sharing profits and losses in the ratio of 2:1. Their capitals at the end of the financial year 2024-25 were Rs. 1,80,000 and Rs. 90,000. During the year 2024-25, drawings of Varun and Karan were Rs. 30,000 and Rs. 10,000 respectively, which had been duly debited to partner's capital accounts. Profit before charging interest on capital for the year was Rs. 24,000, the same had also been distributed in their profit sharing ratio. Further Karan brought additional capital of Rs. 20,000 on December 31, 2024. Calculate interest on capital for Varun @ 10% p.a. for the year 2024-25.

2026: 20 May Shift 1

If the capital of partners is fixed, then the salary provided to the partner is posted in which of the following account?

Solution

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