How will a firm deal with a situation when its partnership deed provides for interest on capital, but the profit earned by it is not enough to do so, at the rate mentioned in the deed?
How will a firm deal with a situation when its partnership deed provides for interest on capital, but the profit earned by it is not enough to do so, at the rate mentioned in the deed?
Anurag Pathak Changed status to publish April 9, 2023
Answer:-
When the amount of available profit is less than the total amount of interest on capital, the available profit will be distributed in the ratio of interest on capital of each partner.
Anurag Pathak Changed status to publish April 9, 2023
