Class 12 Exam > Class 12 Questions > In the absence of partnership deed, a partner...
Start Learning for Free
In the absence of partnership deed, a partner is entitled to an interest on the amount of additional capital advanced by him to the firm at a rate of:
- a)Entitled for 6% p.a. on their additional capital, only when there are profits.
- b)Entitled for 10% p.a. on their additional capital
- c)Entitled for 12% p.a. on their additional capital
- d)Not entitled for any interest on their additional capitals.
Correct answer is option 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
In the absence of partnership deed, a partner is entitled to an intere...
In the absence of a partnership deed, the rights and obligations of the partners are governed by the provisions of the Partnership Act, 1932. According to Section 13 of the Act, partners are not entitled to any interest on the additional capital advanced by them to the firm.
Key Points:
- Absence of partnership deed
- Rights and obligations governed by Partnership Act, 1932
- Section 13 of the Act
- No entitlement to interest on additional capital
Explanation:
Absence of partnership deed:
When there is no partnership deed, it means that there is no written agreement between the partners specifying the terms and conditions of the partnership. In such cases, the partnership is governed by the default provisions of the Partnership Act, 1932.
Rights and obligations governed by Partnership Act, 1932:
The Partnership Act, 1932 provides guidelines and rules for the formation, operation, and dissolution of partnerships. It also determines the rights and obligations of the partners in the absence of a written agreement.
Section 13 of the Act:
Section 13 of the Partnership Act, 1932 states that partners are not entitled to any interest on the additional capital advanced by them to the firm. This means that if a partner contributes additional capital to the partnership, they cannot claim any interest on that amount.
No entitlement to interest on additional capital:
Based on the provisions of the Partnership Act, 1932, partners cannot claim any interest on the additional capital they contribute to the firm. This applies regardless of whether the firm is making profits or not.
Therefore, the correct answer is option 'D' - the partner is not entitled to any interest on their additional capital, even when there are profits. This is because the absence of a partnership deed means that the default provisions of the Partnership Act, 1932 apply, and according to Section 13 of the Act, partners do not have the right to claim interest on their additional capital.
Key Points:
- Absence of partnership deed
- Rights and obligations governed by Partnership Act, 1932
- Section 13 of the Act
- No entitlement to interest on additional capital
Explanation:
Absence of partnership deed:
When there is no partnership deed, it means that there is no written agreement between the partners specifying the terms and conditions of the partnership. In such cases, the partnership is governed by the default provisions of the Partnership Act, 1932.
Rights and obligations governed by Partnership Act, 1932:
The Partnership Act, 1932 provides guidelines and rules for the formation, operation, and dissolution of partnerships. It also determines the rights and obligations of the partners in the absence of a written agreement.
Section 13 of the Act:
Section 13 of the Partnership Act, 1932 states that partners are not entitled to any interest on the additional capital advanced by them to the firm. This means that if a partner contributes additional capital to the partnership, they cannot claim any interest on that amount.
No entitlement to interest on additional capital:
Based on the provisions of the Partnership Act, 1932, partners cannot claim any interest on the additional capital they contribute to the firm. This applies regardless of whether the firm is making profits or not.
Therefore, the correct answer is option 'D' - the partner is not entitled to any interest on their additional capital, even when there are profits. This is because the absence of a partnership deed means that the default provisions of the Partnership Act, 1932 apply, and according to Section 13 of the Act, partners do not have the right to claim interest on their additional capital.
Free Test
| FREE | Start Free Test |
Community Answer
In the absence of partnership deed, a partner is entitled to an intere...
In the absence of partnership deed, partner is not entitled to receive any interest on the capital contributed by him.
|
Explore Courses for Class 12 exam
|
|
Similar Class 12 Doubts
In the absence of partnership deed, a partner is entitled to an interest on the amount of additional capital advanced by him to the firm at a rate of:a)Entitled for 6% p.a. on their additional capital, only when there are profits.b)Entitled for 10% p.a. on their additional capitalc)Entitled for 12% p.a. on their additional capitald)Not entitled for any interest on their additional capitals.Correct answer is option 'D'. Can you explain this answer?
Question Description
In the absence of partnership deed, a partner is entitled to an interest on the amount of additional capital advanced by him to the firm at a rate of:a)Entitled for 6% p.a. on their additional capital, only when there are profits.b)Entitled for 10% p.a. on their additional capitalc)Entitled for 12% p.a. on their additional capitald)Not entitled for any interest on their additional capitals.Correct answer is option 'D'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about In the absence of partnership deed, a partner is entitled to an interest on the amount of additional capital advanced by him to the firm at a rate of:a)Entitled for 6% p.a. on their additional capital, only when there are profits.b)Entitled for 10% p.a. on their additional capitalc)Entitled for 12% p.a. on their additional capitald)Not entitled for any interest on their additional capitals.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the absence of partnership deed, a partner is entitled to an interest on the amount of additional capital advanced by him to the firm at a rate of:a)Entitled for 6% p.a. on their additional capital, only when there are profits.b)Entitled for 10% p.a. on their additional capitalc)Entitled for 12% p.a. on their additional capitald)Not entitled for any interest on their additional capitals.Correct answer is option 'D'. Can you explain this answer?.
In the absence of partnership deed, a partner is entitled to an interest on the amount of additional capital advanced by him to the firm at a rate of:a)Entitled for 6% p.a. on their additional capital, only when there are profits.b)Entitled for 10% p.a. on their additional capitalc)Entitled for 12% p.a. on their additional capitald)Not entitled for any interest on their additional capitals.Correct answer is option 'D'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about In the absence of partnership deed, a partner is entitled to an interest on the amount of additional capital advanced by him to the firm at a rate of:a)Entitled for 6% p.a. on their additional capital, only when there are profits.b)Entitled for 10% p.a. on their additional capitalc)Entitled for 12% p.a. on their additional capitald)Not entitled for any interest on their additional capitals.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the absence of partnership deed, a partner is entitled to an interest on the amount of additional capital advanced by him to the firm at a rate of:a)Entitled for 6% p.a. on their additional capital, only when there are profits.b)Entitled for 10% p.a. on their additional capitalc)Entitled for 12% p.a. on their additional capitald)Not entitled for any interest on their additional capitals.Correct answer is option 'D'. Can you explain this answer?.
Solutions for In the absence of partnership deed, a partner is entitled to an interest on the amount of additional capital advanced by him to the firm at a rate of:a)Entitled for 6% p.a. on their additional capital, only when there are profits.b)Entitled for 10% p.a. on their additional capitalc)Entitled for 12% p.a. on their additional capitald)Not entitled for any interest on their additional capitals.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Class 12.
Download more important topics, notes, lectures and mock test series for Class 12 Exam by signing up for free.
Here you can find the meaning of In the absence of partnership deed, a partner is entitled to an interest on the amount of additional capital advanced by him to the firm at a rate of:a)Entitled for 6% p.a. on their additional capital, only when there are profits.b)Entitled for 10% p.a. on their additional capitalc)Entitled for 12% p.a. on their additional capitald)Not entitled for any interest on their additional capitals.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 partnership deed, a partner is entitled to an interest on the amount of additional capital advanced by him to the firm at a rate of:a)Entitled for 6% p.a. on their additional capital, only when there are profits.b)Entitled for 10% p.a. on their additional capitalc)Entitled for 12% p.a. on their additional capitald)Not entitled for any interest on their additional capitals.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for In the absence of partnership deed, a partner is entitled to an interest on the amount of additional capital advanced by him to the firm at a rate of:a)Entitled for 6% p.a. on their additional capital, only when there are profits.b)Entitled for 10% p.a. on their additional capitalc)Entitled for 12% p.a. on their additional capitald)Not entitled for any interest on their additional capitals.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of In the absence of partnership deed, a partner is entitled to an interest on the amount of additional capital advanced by him to the firm at a rate of:a)Entitled for 6% p.a. on their additional capital, only when there are profits.b)Entitled for 10% p.a. on their additional capitalc)Entitled for 12% p.a. on their additional capitald)Not entitled for any interest on their additional capitals.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 partnership deed, a partner is entitled to an interest on the amount of additional capital advanced by him to the firm at a rate of:a)Entitled for 6% p.a. on their additional capital, only when there are profits.b)Entitled for 10% p.a. on their additional capitalc)Entitled for 12% p.a. on their additional capitald)Not entitled for any interest on their additional capitals.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice Class 12 tests.
|
|
Explore Courses for Class 12 exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup