Describe the accounting provisions of partnership Act 1932, in absence

1.	Describe the accounting provisions of partnership Act 1932, in absence of a partnership deed.
Answer» The following provisions of partnership Act 1932, will be applicable if no partnership deed is prepared or no clarification is made in the partnership deed. Each partner contributes capital in the firm by mutual agreement. It is not mandatory to bring a capital for each partner. Interest on capital cannot be paid and interest on drawings cannot be charged. The distribution of profit and loss would remain in equal ratio. Salary, bonus, commission or remuneration cannot be paid to the partners. 6% p.a. interest is payable for the loan given by any partner to the firm. In case of any reasonable expense incurred by the partner for the firm, the partner has right to reimburse it.

Describe the accounting provisions of partnership Act 1932, in absence of a partnership deed.

Answer»

The following provisions of partnership Act 1932, will be applicable if no partnership deed is prepared or no clarification is made in the partnership deed.

Each partner contributes capital in the firm by mutual agreement. It is not mandatory to bring a capital for each partner.
Interest on capital cannot be paid and interest on drawings cannot be charged.
The distribution of profit and loss would remain in equal ratio.
Salary, bonus, commission or remuneration cannot be paid to the partners.
6% p.a. interest is payable for the loan given by any partner to the firm.
In case of any reasonable expense incurred by the partner for the firm, the partner has right to reimburse it.

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Describe the accounting provisions of partnership Act 1932, in absence of a partnership deed.

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