How will you deal with the following items in the absence of a Partnership Deed:
How will you deal with the following items in the absence of a Partnership Deed:
i) Interest on Capital
ii) Interest on Drawings
iii) Interest on Partner’s Loan to the firm
iv) Share in Profit and Loss
Anurag Pathak Changed status to publish April 9, 2023
Answer:-
i) Interest on Capital will not be allowed (paid)
ii) Interest on drawings will not be charged
iii) Interest on loan from a partner will be allowed (Paid) @ 6% p.a.
iv) profit/Loss will be shared equally.
Anurag Pathak Changed status to publish April 9, 2023