Are you looking for the rules and provisions in the absence of partnership as given in class 12 Accountancy CBSE Board. I have summed up all rules if there is only verbal agreement among partners.
Provisions applicable in the absence of Partnership Deed
In the absence of partnership Deed or if partnership Deed is silent on certain point. following Provisions of Indian Partnership Act 1932 would apply.
1. Profit Sharing Ratio:- Profits and Losses are to be shared equally irrespective of their capital contribution.
2. Interest on Capital:- No interest on capital is allowed to the partners.
3. Interest on Drawings:- No Interest is to be charged on drawings.
4. Remuneration to a Partner:- No partner is entitled to any salary and commission for taking active part in day to day business affairs.
5. Interest on Loan of Partner:- On any loan given by partner to the firm. Interest @6% p.a. would be allowed even if there are losses to the firm.
6. Admission of a partner:- To admit a new partner all existing partners consent is mandatory.