Kavita and Laxmi run a charitable dispensary. Kavita wants to have a partnership deed. What is your opinion? Post category:Accountancy Reading time:1 mins read SOLUTION They need not have a partnership deed because the activity they are carrying is charitable in nature. There is no business and sharing of profits. 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 PostIn the absence of partnership deed, at which rate interest is allowed on a partner’s loan? Next PostWhat is meant by fixed capital of partners? You Might Also Like What is meant by Non-Convertible Debentures? September 29, 2022 What is meant by change in profit-sharing September 26, 2022 Amit and Sumit entered into partnership on 1st April, 2021 contributing Rs. 1,50,000 and Rs. 2,50,000 respectively towards capital. The Partnership Deed provided for interest on capital @ 10% p.a. It also provided that Capital Accounts shall be maintained following Fixed Capital Accounts method. The firm earned net profit of Rs. 1,00,000 for the year ended 31st March 2022 . Pass the Journal entry for interest on capital. July 21, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Amit and Sumit entered into partnership on 1st April, 2021 contributing Rs. 1,50,000 and Rs. 2,50,000 respectively towards capital. The Partnership Deed provided for interest on capital @ 10% p.a. It also provided that Capital Accounts shall be maintained following Fixed Capital Accounts method. The firm earned net profit of Rs. 1,00,000 for the year ended 31st March 2022 . Pass the Journal entry for interest on capital. July 21, 2022