Multiple choice

Which of the following statements is definitely not true when there is no partnership deed?

  1. The working partners are not entitled to any salary, commission etc.

  2. The partners will get profit in their capital ratio.

  3. The partners will get interest on advances @ 6% p.a.

  4. No interest will be allowed/charged on capital and drawings of partners.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

This statement is definitely not true. In the absence of any deed, the profits are divided equally.

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