Default Provisions of the Partnership Act 1932

Steps:

• Identify that without a partnership deed, the Indian Partnership Act 1932 applies default rules under Section 13.
• Examine options against Act provisions: no remuneration, interest rules, and profit sharing.
• Rule out A, B, and D as they misstate or contradict defaults.
• Confirm C matches the no-salary rule exactly.

Why C is correct:

• Section 13(a) states a partner is not entitled to remuneration for business conduct unless agreed otherwise.

Why the others are wrong:

• A: No default interest on drawings; allowed only if specified in agreement.
• B: 6% interest applies only to advances beyond agreed capital, not all partner loans.
• D: Profits shared equally (Section 13(b)), not by fixed capital ratio.

Final answer: C