A-LevelAccountingPreparation of financial statements9706/12 · May/June 2022 · Q141 Mark
The provisions of the Partnership Act apply if partners do not draw up a partnership agreement. Which statement is true as a provision of the Partnership Act?
AInterest on drawings is charged at 5% a year.
BInterest on loans from partners is to be at 8% a year.
CPartners are not entitled to salaries.
DProfits are to be shared in the ratio of fixed capitals.
✓ Correct answer
C: Partners are not entitled to salaries.
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