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Get complete step-by-step solutions for T.S. Grewal Class 12 Vol 1 2025-2026 - Chapter 1 - Accounting for Partnership Firm – Fundamentals. Study double-entry system details, practice timed problems, and verify answers directly.
Chapter 1 - Accounting for Partnership Firm – Fundamentals
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). |
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