Question

State whether the following statements are True or False
(i) Current Accounts are maintained in case of fluctuating capital system.
(ii) Partners are entitled to get interest @ 6%`p.a. on the loan given to the firm, if Partnership Deep is silent on the issue.
(iii) At least two person are necessary to form a partnership
(iv) In the absence of an agreement, profits and losses are distributed among the partners equally.
(v) A partner who devotes more time to a business than others is entitled to get a salary.
(vi) A partner who has invested more capital in the firm is entitled to get interest on the difference in capital amount.
(vii) When a partner draws a fixed sum in the middle of each month for 12 months, interest on total drawings will be equal to interest of 6 months at an agreed rate per annum.
(ix) If the Partnership Deep is silent, interest @ 6% would be charged
(x) Interest on partner's loan is to be given @ 10% p.a. if the deed is silent about the rate.
(xi) Valid partnership can be formulated even without a written agreement between the partners.
(xii) Partners are mutual agents of each other so far as the business of the firm is concerned.

Answer 1

Answer:

1. True

2. True

3. True

4. False

5. False

6. False

7. True

9. True

10. False

11. True

12. True