In the absence of a Partnership Deed, State the Provisions of the Partnership Act, 1932 relating to:
a) Salaries of Partners
b) Interest on Partner’s Capitals
c) Interest on Loan by Partner
d) Division of Profit
e) Interest on Partner’s drawings
f) Interest on Loan given to partners
a) In The absence of Partnership Dee, provisions of the Indian Partnership Act, of 1932 are applied and no Salaries to partners are provided. Hence no salaries would be provided to Partners.
b) In The absence of the Partnership Deed, provisions of the Indian Partnership Act, 1932 are applied and no interest on the partner’s capital is provided. Hence no interest in the partner’s capital would be provided to Partners.
c) In the absence of the partnership Deed, provisions of the Indian Partnership Act, of 1932 would be applied. Thus interest on the loan by the partner would be provided by @6% p.a.
d) In the absence of a partnership Deed, provisions of the Indian Partnership Act, of 1932 would be applied and no interest on the partner’s drawings is provided. Hence no interest in the partner’s drawings would be provided.
e) In the absence of Partnership Dee, provisions of the Indian Partnership Act, of 1932 would be applied and no interest on loans to partners by the firm would be charged.