Question

Provisions of the Partnership Act, 1932 are applied

• A. if a Partnership Deed does not exist.
• B. If Partnership Deed exists but there are differences among the partners.
• C. if capital contribution by the partners is not same.
• D. If Partner's salary is not provided in the Partnership Deed.

Hint:

If no Partnership Deed exists: \[ \text{Indian Partnership Act, 1932 applies} \]

Answer 1

The Correct Option is A

A Partnership Deed is a written agreement containing:
• Rights of partners
• Duties of partners
• Profit-sharing ratio
• Interest on capital
• Salary and other terms When a Partnership Deed: \[ \text{does not exist} \] or when certain matters are not mentioned in the deed, then the provisions of the: \[ \text{Indian Partnership Act, 1932} \] become applicable. These provisions are known as: \[ \text{rules applicable in the absence of partnership deed} \] Option analysis:
• Option (A): Correct
• Option (B): Differences among partners do not automatically apply the Act
• Option (C): Unequal capital contribution is allowed in partnership
• Option (D): Only specific omitted clauses are governed by the Act, but the general condition is absence of deed Therefore: \[ \boxed{\text{(A)}} \]