Kanha, Neeraj and Asha were partners in a firm. They admitted Raghav their landlord as a partner in the firm. Raghav brings sufficient amount of capital and goodwill premium for his share in the profits. Raghav had given a loan of ₹ 1,00,000 @ 10% p.a. interest to the partnership firm before he became the partner. Now the accountant of the firm is emphasising that the interest on loan should be paid @ 6% p.a. Is he right in doing so? Give reason in support of your answer.
Kanha, Neeraj and Asha were partners in a firm. They admitted Raghav their landlord as a partner in the firm. Raghav brings a sufficient amount of capital and goodwill premium for his share in the profits. Raghav had given a loan of ₹ 1,00,000 @ 10% p.a. interest to the partnership firm before he became the partner. Now the accountant of the firm is emphasizing that the interest on the loan should be paid @ 6% p.a. Is he right in doing so? Give a reason in support of your answer.
Anurag Pathak Changed status to publish April 9, 2023
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.
Anurag Pathak Changed status to publish April 9, 2023
