Question

In the absence of an agreement to the contrary, the partners are

(1) Entitled for 6% interest on their capitals, only when there are profits

(2) Entitled for 9% interest on their capitals, only when there are profits

(3) Entitled for interest on capital on the bank rate, only when there are profits

(4) Not entitled for any interest in their capitals​

Answer 1

Answer:

As per Indian partnership Act, 2013 u/s 13(c) partners can't be entitled to interest on their capitals if there's no partnership deed or the deed is silent.

So the answer is (4) Not entitled for any interest in their capital.

Answer 2

Answer:

According to Section 13(c) of the Indian Partnership Act, 2013, partners are not entitled to interest on their capitals if there is no partnership deed if the deed is silent.

As a result, the answer is (4) They are not entitled to receive interest on their capital.

Explanation:

A contrary agreement is common when a contract is sought between two or more parties, but one or more of the parties is a newly formed corporation.

The capital supplied by the partner when beginning the firm is used to determine the profit share ratio.

In the absence of an agreement, however, partners are not entitled to interest on capital. And, if the agreement allows it, the Act limits the interest on capital.

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