Question : Assertion (A): A partnership deed may contain clauses that differ from those found in the Partnership Act of 1932, and in such cases, the provisions of the partnership deed take priority.
Reason (R): When partners cannot come to an agreement on a topic, the Partnership Act of 1932's provisions take effect (say, profits sharing ratio).
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is true but the Reason (R) is false
Option 4: Assertion (A) is not correct but the Reason (R) is correct
Correct Answer: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Solution : The Partnership Act's rules will be in effect in the absence of a partnership deed. Everything pertaining to the partners' dealings with one another will be spelled out in the partnership deed. However, in the absence of a contract, the Indian Partnership Act of 1932 must be followed when conducting the accounting.
Hence the correct answer is option 1.
Question : Assertion (A): If the partnership deed does not address the payment of interest, the interest on loans to partners is charged at a rate of 6% per year. Reason (R): In the absence of Partnership Deed, provisions of the Partnership Act, 1932 apply. Therefore, 6%
Question : Assertion (A): The partnership deed may be either written or oral. Reason (R): In order to avoid all misunderstandings and disputes, it is always the best course to have a written agreement duly signed and registered under the Act.
Question : Assertion (A): The partnership agreement can be written or oral. Reason (R): To avoid any misunderstandings or disputes, it is always best to have a written agreement that has been signed and registered under the Act.
Question : Assertion (A): The firm's partners are Amit, Bharat, and Charu. The Partnership Agreement provides that Amit will be paid a salary of 60,000 per year. Bharat and Charu have also requested salaries of 60,000 each. Salaries for Bharat and Charu will be permitted.
Question : Assertion (A): Dissolution of Partnership results in no change in the economic relationship. Reason (R): Dissolution of Partnership firm results in the ending of the economic relationship.
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