Question : In the absence of partnership deed, the following rule will apply:
Option 1: No interest on capital
Option 2: Profit sharing in capital ratio
Option 3: Profit based salary to working partner
Option 4: 9% Interest on drawing

Question

Question : In the absence of partnership deed, the following rule will apply:

Option 1: No interest on capital

Option 2: Profit sharing in capital ratio

Option 3: Profit based salary to working partner

Option 4: 9% Interest on drawing

Team Careers360 · Accepted Answer

Correct Answer: No interest on capital

Solution : No interest on capital shall be allowed to the partners in the absence of partnership deed. If there is a provision for the interest on capitals in the partnership deed. It will allowed only when there is a profit.
Hence, option 1 is the correct answer.

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Question : In the absence of partnership deed, the following rule will apply:Option 1: No interest on capital Option 2: Profit sharing in capital ratioOption 3: Profit based salary to working partner Option 4: 9% Interest on drawing

Related Questions

Question : Which one of the following items cannot be recorded in the profit and loss appropriation account?Option 1: Interest on capital Option 2: Interest on drawing Option 3: Rent paid to partner Option 4: Partner's salary

Question : In the absence of partnership deed, partners are entitled to get:Option 1: salaryOption 2: commissionOption 3: equal share in profitOption 4: profits in capital ratio

Question : Which of the following does not consist of reconstruction of partnership?Option 1: Retirement and death of a partner Option 2: Change in profit sharing ratio Option 3: Admision of a partnerOption 4: Dissolution of partnership

Question : On 1st June, 2018 a partner introduced in the firm additional capital Rs. 50,000. In the absence of partnership deed, on 31st march 2019 he will receive interest:Option 1: Rs. 3,000 Option 2: Zero Option 3: Rs. 2,500Option 4: Rs. 1,800

Question : In the absence of a partnership deed, Interest on a loan of a partner is allowed.Option 1: @ 6% p.a.Option 2: @12% p.a.Option 3: No interest is allowedOption 4: @ 8% p.a.

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Question : In the absence of partnership deed, the following rule will apply:
Option 1: No interest on capital
Option 2: Profit sharing in capital ratio
Option 3: Profit based salary to working partner
Option 4: 9% Interest on drawing

Question : Which one of the following items cannot be recorded in the profit and loss appropriation account?
Option 1: Interest on capital
Option 2: Interest on drawing
Option 3: Rent paid to partner
Option 4: Partner's salary

Question : In the absence of partnership deed, partners are entitled to get:
Option 1: salary
Option 2: commission
Option 3: equal share in profit
Option 4: profits in capital ratio

Question : Which of the following does not consist of reconstruction of partnership?
Option 1: Retirement and death of a partner
Option 2: Change in profit sharing ratio
Option 3: Admision of a partner
Option 4: Dissolution of partnership

Question : On 1st June, 2018 a partner introduced in the firm additional capital Rs. 50,000. In the absence of partnership deed, on 31st march 2019 he will receive interest:
Option 1: Rs. 3,000
Option 2: Zero
Option 3: Rs. 2,500
Option 4: Rs. 1,800

Question : In the absence of a partnership deed, Interest on a loan of a partner is allowed.
Option 1: @ 6% p.a.
Option 2: @12% p.a.
Option 3: No interest is allowed
Option 4: @ 8% p.a.