In the absence of an agreement, partners are entitled to:
  • a)
    Salary
  • b)
    commission
  • c)
    Interest on loans and advances 
  • d)
    Profit share in capital ratio 
Correct answer is option 'C'. Can you explain this answer?

CA Foundation Question

Rida Shaikh answered Aug 21, 2019
Yes it is right .As per the partnership ACT if the partnership deed is silent about the things mentioned above so in that case the partners are not entitled for any salary or interest on capital , but as per the provision even if the partnership deed is silent the partner is entitled for an INTEREST @6% on loan or any advance given by him to the firm

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