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Which of the following rule applies to the partnership firm in the absence of a partnership deed?

32. Which of the following rule applies to the partnership firm in the absence of a partnership deed?

1. Equal profit sharing ratio
2. Profit based salary to the partners
3. No interest shall be charged on capital
4. 6 % Interest on Drawings

Answer: C) No interest shall be charged on capital

Explanation:

Due to the absence of a partnership deed in the firm no interest will be charged on the capital in the partnership firm.