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A Level Accounting (9706)•9706/13/M/J/23
Question 15 from 9706/13/M/J/23

Explanation

Default provisions of Partnership Act 1890

Steps:

  • Refer to Section 24 of the Partnership Act 1890 for rules applying in absence of partnership agreement.
  • Review subsections on profit sharing, interest, salaries, and implied rights to drawings.
  • Match each option to explicit or implied statutory defaults.
  • Note ambiguity as multiple options align with defaults, requiring clarification.

Not enough information to select one correct option, as B, C, and D accurately reflect default provisions (no interest on capital per s.24(4), equal sharing per s.24(1), no salaries per s.24(8)), while A is debatable since drawings are implicitly permitted post-profit ascertainment but not regulated.

Final answer: Ambiguous; B, C, D correct by default

Topic: Types of business entity

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