Choose the incorrect pair. | Item | Section | | --- | --- | | (a) Interest on Capital | Sec 13(c) | | (b) Remuneration to Partners | Sec 13(a) | | (c) Interest on Drawings | Sec 13(d) | | (d) Profit Sharing Ratio | Sec 13(b) | (a) Interest on Capital - Sec 13(c) (b) Remuneration to Partners - Sec 13(a) (c) Interest on Drawings - Sec 13(d) (d) Profit Sharing Ratio - Sec 13(b)

> > [!TLDR] > The incorrect pair is (c) Interest on Drawings - Sec 13(d). > > Section 13 of the Indian Partnership Act, 1932 lays down the default rules when the deed is silent (Accounts of Partnership Firms – Fundamentals, TN HSC Commerce): > > | Item | Correct position | > | --- | --- | > | (a) Interest on Capital → Sec 13(c) | Correct (interest on capital payable only out of profits) | > | (b) Remuneration to Partners → Sec 13(a) | Correct (no partner is entitled to remuneration) | > | (c) Interest on Drawings → Sec 13(d) | **Incorrect** | > | (d) Profit Sharing Ratio → Sec 13(b) | Correct (profits shared equally) | > …

Choose the incorrect pair. | Item | Section | | -- – Class 12 Accountancy

Question 35 of 43

Choose the incorrect pair.

Item	Section
(a) Interest on Capital	Sec 13(c)
(b) Remuneration to Partners	Sec 13(a)
(c) Interest on Drawings	Sec 13(d)
(d) Profit Sharing Ratio	Sec 13(b)

Interest on Capital - Sec 13(c)
Remuneration to Partners - Sec 13(a)
Interest on Drawings - Sec 13(d)
Profit Sharing Ratio - Sec 13(b)

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The incorrect pair is (c) Interest on Drawings - Sec 13(d).

Section 13 of the Indian Partnership Act, 1932 lays down the default rules when the deed is silent (Accounts of Partnership Firms – Fundamentals, TN HSC Commerce):

Item	Correct position
(a) Interest on Capital → Sec 13(c)	Correct (interest on capital payable only out of profits)
(b) Remuneration to Partners → Sec 13(a)	Correct (no partner is entitled to remuneration)
(c) Interest on Drawings → Sec 13(d)	Incorrect
(d) Profit Sharing Ratio → Sec 13(b)	Correct (profits shared equally)
…

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2026Set MARCH1 markMCQ
$Q. In the absence of an agreement, partners are entitled to :$
(a) Interest on loan
(b) Salary
(c) Interest on capital
(d) Commission
›Reveal solutionSolution
No deed → Partnership Act rules apply: only interest on loan @ 6% p.a. is allowed. Option (a).

Where partners have no agreement (deed), the provisions of the Indian Partnership Act, 1932 govern:

No salary or commission to any partner.

No interest on capital.

Interest on a partner's loan to the firm is allowed at 6% per annum (this is a charge against profit).

Profits and losses are shared equally. …
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CBSE 2025Set MARCH1 markMCQ
$Q. As per the Indian Partnership Act, 1932, the rate of interest allowed on loans advanced by Partners is :$
(a) 6% per annum
(b) 12% per annum
(c) 8% per annum
(d) 5% per annum
›Reveal solutionSolution

As per the Indian Partnership Act, 1932, interest on a loan advanced by a partner is allowed at 6% per annum.

Under the rules that apply in the absence of a partnership deed (Tamil Nadu HSC Commerce syllabus), most items follow default rules — no salary, no interest on capital, and equal sharing of profits. However, a loan given by a partner over and above his capital is treated as a genuine advance to the firm, so the Act specifically allows interest on it.

…

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CBSE 2025Set MARCH1 markMCQ

Q. Choose the incorrect pair. Item Section

(a) Interest on Capital | Sec 13(c) | |

(b) Remuneration to Partners | Sec 13(a) | |

(d) Profit Sharing Ratio | Sec 13(b) |

(a) Interest on Capital - Sec 13(c)

(b) Remuneration to Partners - Sec 13(a)

(d) Profit Sharing Ratio - Sec 13(b)

›Reveal solution

The incorrect pair is (c) Interest on Drawings - Sec 13(d).

Section 13 of the Indian Partnership Act, 1932 lays down the default rules when the deed is silent (Accounts of Partnership Firms – Fundamentals, TN HSC Commerce):

Item	Correct position
(a) Interest on Capital → Sec 13(c)	Correct (interest on capital payable only out of profits)
(b) Remuneration to Partners → Sec 13(a)	Correct (no partner is entitled to remuneration)
(c) Interest on Drawings → Sec 13(d)	Incorrect
(d) Profit Sharing Ratio → Sec 13(b)	Correct (profits shared equally)
…

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CBSE 2023Set MARCH1 markMCQ
$Q. As per the Indian Partnership Act, 1932, the rate of interest allowed on loans advanced by partners is :$
(a) 5% per annum
(b) 8% per annum
(c) 6% per annum
(d) 12% per annum
›Reveal solutionSolution
When there is no deed, Section 13(d) of the Indian Partnership Act, 1932 allows interest on a partner's loan to the firm at 6% per annum.

A loan advanced by a partner to the firm is different from capital. Even where the deed is silent (or there is no deed), the Act protects the lending partner:

Interest on such a loan/advance is payable at 6% per annum. …
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CBSE 2022Set MARCH1 markMCQ
$Q. In the absence of a partnership deed, profits of the firm will be shared by the partners in :$
(a) Equal ratio
(b) Capital ratio
(c) Both
(a) and
(b)
(d) None of these
›Reveal solutionSolution
Without a partnership deed, profits are shared equally among partners.

In the Tamil Nadu HSC Class-12 Accountancy syllabus, when there is no partnership deed (or the deed is silent), the provisions of the Indian Partnership Act, 1932 apply. Among these:

Profits and losses are shared equally, irrespective of capital contributions.

No interest is allowed on capital.

No interest is charged on drawings. …
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CBSE 2020Set MARCH1 markMCQ
$Q. In the absence of an agreement among the partners, interest on capital is :$
(a) Allowed @ 6% per annum
(b) Not allowed
(c) Allowed at bank rate
(d) Allowed @ 5% per annum
›Reveal solutionSolution
Without a partnership agreement, interest on capital is not allowed — option (b).

Where there is no partnership deed, or the deed is silent, the provisions of the Indian Partnership Act, 1932 govern. Among these default rules:

No interest is allowed on capital.

No interest is charged on drawings.

No salary or commission is payable to any partner.

Profits and losses are shared equally. …
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