X and Y are partners in a firm. They do not have any partnership deed. What should be done in the following cases
X and Y are partners in a firm. They do not have any partnership deed. What should be done in the following cases:-
(a) X has invested ₹ 10,00,000 and Y only ₹ 5,00,000 as capital. X wants interest on capital @ 8% p.a.
(b) X spends twice the time that Y devotes to the business. He wants a salary of ₹ 10,000 per month for the extra time spent by him.
(c) X wants to introduce his son Rajesh into the business for 25% share to be given out of his share of profits. Y objects it.
(d) X has advanced a loan of ₹ 2,00,000 to the firm. He claims interest @ 9% p.a.
(e) Y withdraws ₹ 10,000 per month from the firm for his personal use. X claims that interest on drawings @ 12% p.a be charged from Y.
Anurag Pathak Answered question May 23, 2024
Solution:-
Solution:-
(a) No Interest on Capital is allowed
Reason:- In the absence of a partnership deed. The provisions of the Indian Partnership Act, 1932 applied and No Interest is allowed on Partner’s Capital.
(b) X is not entitled to any Salary.
Reason:- In the absence of a partnership deed. The provisions of the Indian Partnership Act, 1932 applied and No Salary is allowed to Partner’s.
(c) X’s Son can not be admitted as a partner, if Y Objects.
Reason:- In the absence of a partnership deed. The provisions of the Indian Partnership Act, 1932 applied and Admission of partner requires the consent of all the Partner’s. if any partner objects, new partner can not be admitted.
(d) X is entitled to claim interest on his loan @ 6% p.a.
Reason:- In the absence of a partnership deed. The provisions of the Indian Partnership Act, 1932 applied and the Partner is entitled to claim interest on his loan to the firm @ 6% p.a.
(e) Interest on Y’s drawings will not be charged.
Reason:- In the absence of a partnership deed. The provisions of the Indian Partnership Act, 1932 applied and Interest on Partner’s drawings will not be charged.
Anurag Pathak Answered question May 23, 2024
