B has drawn Rs. 50,000 from the firm for his personal use during the year. Firm wants to charge 6% p.a. interest on this amount. Can the interest be charged, if partnership deed is silent in this matter? Post category:Accountancy Reading time:1 mins read SOLUTION Interest cannot be charged. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostA claims 6% p.a. interest on his capital. Is his claim valid if partnership deed is silent in this matter? Next PostRuchika and Surekha entered into partnership with capitals of Rs. 30,00.000 and Rs. 15,00,000 respectively. They did not enter into partnership deed. At the end of accounting year, Ruchika claimed interest on capital @6% p.a. but Surekha convinced Ruchika that interest cannot be allowed on capital. Explain how Surekha would have convinced Ruchika? You Might Also Like What is meant by ‘Solvency of Business’? (C.B.S.E. 2016) October 1, 2022 What is meant by Super Profits? September 26, 2022 X and Y are partners. The Partnership Deed provides inter alia: (a) That the Accounts be balanced on 31st March every year. (b) That the profits be divided as: X one-half, Y one-third and carried to a Reserve one-sixth. (c) That in the event of the death of a partner, his Executors be entitled to be paid: (i) The Capital to his credit till the date of death. (ii) His proportion of profits till the date of death based on the average profits of the last three completed years. (iii) By way of Goodwill, his proportion of the total profits for the three preceding years. (d) BALANCE SHEET as at 31st March, 2021 August 5, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
X and Y are partners. The Partnership Deed provides inter alia: (a) That the Accounts be balanced on 31st March every year. (b) That the profits be divided as: X one-half, Y one-third and carried to a Reserve one-sixth. (c) That in the event of the death of a partner, his Executors be entitled to be paid: (i) The Capital to his credit till the date of death. (ii) His proportion of profits till the date of death based on the average profits of the last three completed years. (iii) By way of Goodwill, his proportion of the total profits for the three preceding years. (d) BALANCE SHEET as at 31st March, 2021 August 5, 2022