Default Provisions of the Partnership Act

Steps:

• Identify key sections of the Partnership Act, 1932, governing partner entitlements.
• Evaluate each option against statutory defaults (no agreement assumed).
• Confirm true statements based on Sections 12-13.
• Select the option matching the Act's explicit rule.

Why C is correct:

• Section 13(a) states partners are not entitled to remuneration (salaries) for business conduct unless agreed otherwise.

Why the others are wrong:

• A: No statutory 5% rate on drawings; interest only if partnership deed specifies.
• B: Interest on partner loans is 6% only on advances beyond capital (Section 13(d)), not all loans.
• D: Profits shared equally (Section 13(b)), not by fixed capital ratio unless agreed.

Final answer: C