Question

What Are the Provisions if There Is No Partnership Deed?

Answer 1

In absence of a partnership deed, the following provisions will apply as per Indian Partnership Act, 1932.

1. No salary or remuneration can be paid to any partner
2. Profits and losses should be equally shared between the partners
3. No interest shall be payable on capital
4. No interest shall be charged on drawings made by partners
5. Interest on loan is allowed at 6% per annum.

Also read:

• MCQs on Partnership
• Partnership Deed
• What Is Partnership
• Difference Between LLP and Partnership

Stay connected with BYJU’S for more such questions and answers on various commerce topics.