CA Foundation Exam > CA Foundation Questions > In the absence of any deed of partnership---a...
Start Learning for Free
In the absence of any deed of partnership---
- a)Only working partners are entitled to Salary.
- b)Partners are entitled for commission @ 6% of the net profits of the firm.
- c)Partners contributing highest capital is entitled for interest on capital @ 6% p.a.
- d)Interest at the rate of 6% is to be allowed on a partner’s loan to the firm.
Correct answer is option 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
In the absence of any deed of partnership---a)Only working partners ar...
In the absence of any agreement interest on advances by a partner is allowed at 6 percent p.a. and is allowed whether there is profit or no. Interest on loan is a charge and will be provided regardless of profits earned.
Most Upvoted Answer
In the absence of any deed of partnership---a)Only working partners ar...
Understanding the Correct Answer: Option D
In the absence of a deed of partnership, certain default provisions under the Indian Partnership Act, 1932 come into play. Let's break down the options to understand why option D is correct.
Option A: Only working partners are entitled to Salary
- In the absence of an agreement, partners do not receive any salary for their work in the firm. Thus, this statement is incorrect.
Option B: Partners are entitled for commission @ 6% of the net profits of the firm
- There is no provision for a commission for partners unless specified in a partnership deed. Hence, this option is also incorrect.
Option C: Partners contributing highest capital is entitled for interest on capital @ 6% p.a.
- Interest on capital is not automatically granted unless stated in the partnership agreement. Therefore, this option is misleading and incorrect.
Option D: Interest at the rate of 6% is to be allowed on a partner’s loan to the firm
- This is the correct statement. According to Section 13 of the Indian Partnership Act, if a partner lends money to the firm, they are entitled to interest at the rate of 6% per annum, unless otherwise agreed upon in the partnership deed. This provision ensures that partners who contribute loans to the business receive compensation for the capital they have provided.
Conclusion
In summary, option D is the only statement that aligns with the default provisions of the Indian Partnership Act in the absence of a partnership deed, confirming that partners are entitled to interest on loans made to the firm.
In the absence of a deed of partnership, certain default provisions under the Indian Partnership Act, 1932 come into play. Let's break down the options to understand why option D is correct.
Option A: Only working partners are entitled to Salary
- In the absence of an agreement, partners do not receive any salary for their work in the firm. Thus, this statement is incorrect.
Option B: Partners are entitled for commission @ 6% of the net profits of the firm
- There is no provision for a commission for partners unless specified in a partnership deed. Hence, this option is also incorrect.
Option C: Partners contributing highest capital is entitled for interest on capital @ 6% p.a.
- Interest on capital is not automatically granted unless stated in the partnership agreement. Therefore, this option is misleading and incorrect.
Option D: Interest at the rate of 6% is to be allowed on a partner’s loan to the firm
- This is the correct statement. According to Section 13 of the Indian Partnership Act, if a partner lends money to the firm, they are entitled to interest at the rate of 6% per annum, unless otherwise agreed upon in the partnership deed. This provision ensures that partners who contribute loans to the business receive compensation for the capital they have provided.
Conclusion
In summary, option D is the only statement that aligns with the default provisions of the Indian Partnership Act in the absence of a partnership deed, confirming that partners are entitled to interest on loans made to the firm.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
In the absence of any deed of partnership---a)Only working partners are entitled to Salary.b)Partners are entitled for commission @ 6% of the net profits of the firm.c)Partners contributing highest capital is entitled for interest on capital @ 6% p.a.d)Interest at the rate of 6% is to be allowed on a partner’s loan to the firm.Correct answer is option 'D'. Can you explain this answer?
Question Description
In the absence of any deed of partnership---a)Only working partners are entitled to Salary.b)Partners are entitled for commission @ 6% of the net profits of the firm.c)Partners contributing highest capital is entitled for interest on capital @ 6% p.a.d)Interest at the rate of 6% is to be allowed on a partner’s loan to the firm.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In the absence of any deed of partnership---a)Only working partners are entitled to Salary.b)Partners are entitled for commission @ 6% of the net profits of the firm.c)Partners contributing highest capital is entitled for interest on capital @ 6% p.a.d)Interest at the rate of 6% is to be allowed on a partner’s loan to the firm.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the absence of any deed of partnership---a)Only working partners are entitled to Salary.b)Partners are entitled for commission @ 6% of the net profits of the firm.c)Partners contributing highest capital is entitled for interest on capital @ 6% p.a.d)Interest at the rate of 6% is to be allowed on a partner’s loan to the firm.Correct answer is option 'D'. Can you explain this answer?.
In the absence of any deed of partnership---a)Only working partners are entitled to Salary.b)Partners are entitled for commission @ 6% of the net profits of the firm.c)Partners contributing highest capital is entitled for interest on capital @ 6% p.a.d)Interest at the rate of 6% is to be allowed on a partner’s loan to the firm.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In the absence of any deed of partnership---a)Only working partners are entitled to Salary.b)Partners are entitled for commission @ 6% of the net profits of the firm.c)Partners contributing highest capital is entitled for interest on capital @ 6% p.a.d)Interest at the rate of 6% is to be allowed on a partner’s loan to the firm.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the absence of any deed of partnership---a)Only working partners are entitled to Salary.b)Partners are entitled for commission @ 6% of the net profits of the firm.c)Partners contributing highest capital is entitled for interest on capital @ 6% p.a.d)Interest at the rate of 6% is to be allowed on a partner’s loan to the firm.Correct answer is option 'D'. Can you explain this answer?.
Solutions for In the absence of any deed of partnership---a)Only working partners are entitled to Salary.b)Partners are entitled for commission @ 6% of the net profits of the firm.c)Partners contributing highest capital is entitled for interest on capital @ 6% p.a.d)Interest at the rate of 6% is to be allowed on a partner’s loan to the firm.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of In the absence of any deed of partnership---a)Only working partners are entitled to Salary.b)Partners are entitled for commission @ 6% of the net profits of the firm.c)Partners contributing highest capital is entitled for interest on capital @ 6% p.a.d)Interest at the rate of 6% is to be allowed on a partner’s loan to the firm.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
In the absence of any deed of partnership---a)Only working partners are entitled to Salary.b)Partners are entitled for commission @ 6% of the net profits of the firm.c)Partners contributing highest capital is entitled for interest on capital @ 6% p.a.d)Interest at the rate of 6% is to be allowed on a partner’s loan to the firm.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for In the absence of any deed of partnership---a)Only working partners are entitled to Salary.b)Partners are entitled for commission @ 6% of the net profits of the firm.c)Partners contributing highest capital is entitled for interest on capital @ 6% p.a.d)Interest at the rate of 6% is to be allowed on a partner’s loan to the firm.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of In the absence of any deed of partnership---a)Only working partners are entitled to Salary.b)Partners are entitled for commission @ 6% of the net profits of the firm.c)Partners contributing highest capital is entitled for interest on capital @ 6% p.a.d)Interest at the rate of 6% is to be allowed on a partner’s loan to the firm.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice In the absence of any deed of partnership---a)Only working partners are entitled to Salary.b)Partners are entitled for commission @ 6% of the net profits of the firm.c)Partners contributing highest capital is entitled for interest on capital @ 6% p.a.d)Interest at the rate of 6% is to be allowed on a partner’s loan to the firm.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup