Where there is no agreement made by the partners, the following provisions takes place except
- No salary for partners acting in the business
-
There is interest on capital
- No interest to be charged on drawings
- Profit and loss are to be shared equally
The correct answer is: B
Explanation
According to section 24 of the partnership Act 1890. If no specific agreement is made by the partners, the following takes place:
1. No partners may introduce a new person without the consent of all other partners 2.5% interest a year on loans made by partner e.t.c