In the absence of a partnership deed, the act stipulates that
FINANCIAL
JAMB 2014
In the absence of a partnership deed, the act stipulates that
- A. an amount should be fixed as salary for partners
- B. interest on partners loan should be 25%
- C. interest should not be allowed on partners drawings
- D. profits and losses should not be shared equally
Correct Answer: C. interest should not be allowed on partners drawings
Explanation
In absence of a partnership deed, a partnership Act cannot allow you to charge interest on capital, you cannot charge interest on drawing, you cannot give any salary to any partner, any rent to any partner, and any commission to any partner. also, you have to share profit in an equal ratio.
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *