1 :- 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
Solution :- In The absence of Partnership Deed:
(a) As per the provisions of the Indian Partnership Act, of 1932 are applied and no salaries to partners are provided
(b) As per the provisions of the Indian Partnership Act, 1932 are applied and no interest on the partner’s capitals is provided.
(c) As per the provisions of the Indian Partnership Act, of 1932 would be applied. Thus interest will be provided to partner @6% p.a.
(d) As per the provision of Indian partnership act, 1932 are applied and as per that profits and losses will be shared equally.
(e) As per the provisions of the Indian Partnership Act, of 1932 would be applied and no interest on the partner’s drawings is provided.
(f) As per the provisions of the Indian Partnership Act, of 1932 would be applied and no interest on loans to partners by the firm would be charged.