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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
In the absence of a Partnership Deed, how are the following matters dealt with? State the relevant provisions of the Indian Partnership Act, 1932:
When there is no Partnership Deed, or the deed is silent on a matter, the following provisions of the Indian Partnership Act, 1932 apply:
| Matter | Provision in the absence of a Partnership Deed |
|---|---|
| (i) Salary to a partner | No salary is allowed to any partner. |
| (ii) Interest on partner’s capital | No interest on capital is allowed. |
| (iii) Interest on partner’s loan to the firm | Interest is allowed @ 6% p.a. |
| (iv) Division of profit or loss | Profit/loss is shared equally, irrespective of capital contributed. |
| (v) Interest on drawings | No interest is charged on drawings. |
| (vi) Loan by firm to a partner | No interest is charged (no such provision in the Act). |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 1 Q.1 - Accounting for Partnership Firm Fundamentals", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Accounting for Partnership Firm – Fundamentals.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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