A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2011 · Q121 Mark
If partners do not draw up a partnership agreement, the provisions of the Partnership Act apply. 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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