Question:
What are the rules applicable in absence of partnership deed?
What are the rules applicable in absence of partnership deed?
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In absence of deed, equality is the basic rule for profit sharing and partner remuneration.
Updated On: Feb 16, 2026
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Solution and Explanation
When there is no partnership deed, the following rules apply:
Profits and losses are shared equally among partners.
No partner is entitled to salary or commission.
No interest is allowed on capital.
Interest on drawings is not charged.
Interest at 6% p.a. is allowed on loans advanced by a partner.
Profits and losses are shared equally among partners.
No partner is entitled to salary or commission.
No interest is allowed on capital.
Interest on drawings is not charged.
Interest at 6% p.a. is allowed on loans advanced by a partner.
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