In the absence of a partnership deed, which of the provisions given below does not apply?
Under Section 13 of the Indian Partnership Act, 1932, in the absence of a partnership deed, partners are entitled to share profits equally and must contribute equally to…
Choose your answer
In the absence of a partnership deed, which of the provisions given below does not apply?
Answer and explanation
Correct answer A
Under Section 13 of the Indian Partnership Act, 1932, in the absence of a partnership deed, partners are entitled to share profits equally and must contribute equally to losses irrespective of their capital ratios. Furthermore, no partner is entitled to receive salary, commission, or interest on capital, and no interest is charged on drawings. Therefore, "Profit and loss will be shared in capital ratio among the partners." does not apply.
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