Where there is no agreement made by the partners, the following provisions takes place except

Accounts - Principles of Accounts

JAMB 2019

A. No salary for partners acting in the business
B. There is interest on capital
C. No interest to be charged on drawings
D. Profit and loss are to be shared equally

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Correct Answer: Option B

Explanation

According to section 24 of the partnership Act 1890. If no specific agreement is made by the partners, the following takes place:
1. No partners may introduce a new person without the consent of all other partners 2.5% interest a year on loans made by partner e.t.c

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