In the absence of Partnership Deed, what are the rules relation to: (a) Salaries of partners, (b) Interest on partners’ capitals (c) Interest on partners’ loan (d) Division of profit, (e) Interest on partners’ drawings (f) Interest on loan by partner(s) and (g) Interest on loan to partners?


  Items (Points) Provision in the Absence of Partnership Deed
(a) Salaries of Partners No Salary will be allowed to Partners.
(b) Interest on Partners’ Capitals No interest will be allowed to Partners on Capital
(c) Interest on Partners’ Loan 6% p.a. Interest will be allowed on the amount given by
 partners in the form of Loans and Advances to firm.
(d) Division of Profit Profits will be shared equally; it is irrespective the
 amount of capital contributed by partners
(e) Interest on Partners’ Drawings No Interest will be charged on the Drawings of Partners
(F)Interest on loan by partnerAllowed @ 6% p.a. to partners
(g)Interest on loan to partnerNot charged from partner

Leave a Reply