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Question

In the absence of Partnership Deed, partners are entitled to:

A Profit sharing in the ratio of capital Correct Answer Incorrect Answer
B Salary Correct Answer Incorrect Answer
C Commission Correct Answer Incorrect Answer
D Interest on loans and advances Correct Answer Incorrect Answer

Solution

In the absence of a Partnership Deed, partners are only entitled to interest on loans and advances they have made to the firm. This is because a loan or advance is considered a debt owed by the firm to the partner, and interest is the compensation for the use of that money.

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