Question

Match List-I with List-II in context of not having partnership deed.

	LIST I		LIST II
(A)	Interest on loan	(I)	Equal
(B)	Interest on drawings	(II)	Will not be charged
(C)	Salary	(III)	@ 6% p.a.
(D)	Profit sharing ratio	(IV)	Will not be allowed/provided

Choose the correct answer from the options given below:

• A. A-IV, B-I, C-III, D - II
• B. A-III, B-IV, C-II, D-I
• C. A-IV, B-III, C-II, D-I
• D. A-III, B-II, C-IV, D-I

Answer 1

The Correct Option is C

To solve the problem of matching List-I with List-II in the context of not having a partnership deed, we need to understand typical provisions that apply in the absence of a specific partnership agreement.

	LIST I		LIST II
(A)	Interest on loan	(I)	Equal
(B)	Interest on drawings	(II)	Will not be charged
(C)	Salary	(III)	@ 6% p.a.
(D)	Profit sharing ratio	(IV)	Will not be allowed/provided

1. Interest on loan: In the absence of a partnership deed, partners lending money to the firm are generally entitled to interest on the loan at a simple interest rate, commonly 6% per annum. Match: A-III.
2. Interest on drawings: Typically, no interest is charged on drawings unless stated otherwise. Match: B-II.
3. Salary: Partners are not entitled to a salary unless specifically agreed upon in a partnership deed. Without such a deed, salaries are not allowed. Match: C-IV.
4. Profit sharing ratio: In the absence of an agreement on the profit-sharing ratio, profits and losses are shared equally among partners. Match: D-I.

Thus, the correct matching of List-I with List-II is: A-III, B-II, C-IV, D-I.