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Question
Which of these rights is availabe to a partner under the Partnership Act ?
Which of these rights is availabe to a partner under the Partnership Act ?
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Solution
The correct option is B Right to share profits
According to Section 13(b), the partners have the right to share profits equally unless there is an agreement. Partner is not entitled to receive remuneration for taking part in the conduct of business. This is because in a partnership, all partners work together to earn profits. Interest on capital is paid only if there is profit. So it is just a share of profit in form of interest on capital and Drawing is a withdrawn of cash for personal use.
According to Section 13(b), the partners have the right to share profits equally unless there is an agreement. Partner is not entitled to receive remuneration for taking part in the conduct of business. This is because in a partnership, all partners work together to earn profits. Interest on capital is paid only if there is profit. So it is just a share of profit in form of interest on capital and Drawing is a withdrawn of cash for personal use.
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