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Which of the following rule applies to the partnership firm in the absence of a partnership deed?
32. Which of the following rule applies to the partnership firm in the absence of a partnership deed?
- Equal profit sharing ratio
- Profit based salary to the partners
- No interest shall be charged on capital
- 6 % Interest on Drawings
Answer: C) No interest shall be charged on capital
Explanation:
Due to the absence of a partnership deed in the firm no interest will be charged on the capital in the partnership firm.