Question

discuss in detail the rule applicable in the absence of partnership agreement?

Answer 1

Rules Applicable in the Absence of an Agreement. Under the Partnership Act, 1932 the following rules will be applicable in the absence of an agreement among the partners: Profit or losses of the firm will be shared equally by the partners.(section 13) Interest on capital will not be allowed to any partner.

Absence of a Partnership Deed In case partners do not adopt a partnership deed, the following rules will apply:

• The partners will share profits and losses equally.
• Partners will not get a salary.
• Interest on capital will not be payable.
• Drawings will not be chargeable with interest.
• Partners will get 6% p.a. interest on loans to the firm if they mutually agree.