Student Community
Answer
Answer:- Partnership Deed is a useful document because: i) It regulates the rights, duties, and liabilities of each partner. ii) If any dispute arises between/among the partners, then it can be settled on the basis of the Partnership Deed as…
Answer:- No, it is not compulsory but is preferable to have a Partnership Deed.
Answer:- Aman’s Claim is not valid as in the absence of a partnership Deed, salary to partners is guided by the Indian Partnership Act, of 1932. The Act does not allow the payment of salary to a partner.
Answer:- No Ramesh’s Claim is not valid as in the absence of a partnership Deed, profit sharing is guided by the Indian Partnership Act, 1932. The act provides for sharing profits equally.
Answer:- Net Profit means profit earned by the firm from its Operating and Non-operating Activities. It is ascertained by preparing Profit and Loss Account.
Answer:- Divisible profit means profit remaining to be distributed between/among partners after allowing remuneration (i.e., Salary, Commission, etc.) to partners, interest on capital, transfer to reserve, and charging interest on drawings.
Answer:- No, the Accountant is not right in doing so because Raghav had given a loan of ₹ 1,00,000 @ 10% p.a. interest to the partnership firm which is agreed to be paid.
Answer:- Nil, because in the absence of a Partnership Deed interest on Capital is not allowed.
Answer:- Interest on Loan by Partner = ₹ 20,000 * 6/100 * 9/12 = ₹ 900
Answer:- Both are incorrect because, in the absence of the Partnership Deed, the provisions of the Indian Partnership Act, of 1932 will apply. As per the Indian Partnership Act, 1932, a partner who has given a loan to the firm…