In the absence of Partnership deed, specify the rules relating to the

1.	In the absence of Partnership deed, specify the rules relating to the following: (i) Sharing of profits and losses. (ii) Interest on partner’s capital, (iii) Interest on Partner’s drawings. (iv) Interest on Partner’s loan (v) Salary to a partner.
Answer» (i) Sharing of profits and losses – Equally (ii) Interest on partner’s capital – interest not charged. (iii) Interest on Partner’s drawings – interest not charged (iv) Interest on Partner’s loan – 6% p.a (v) Salary to a partner – not provided

In the absence of Partnership deed, specify the rules relating to the following: (i) Sharing of profits and losses. (ii) Interest on partner’s capital, (iii) Interest on Partner’s drawings. (iv) Interest on Partner’s loan (v) Salary to a partner.

Answer»

(i) Sharing of profits and losses – Equally

(ii) Interest on partner’s capital – interest not charged.

(iii) Interest on Partner’s drawings – interest not charged

(iv) Interest on Partner’s loan – 6% p.a

(v) Salary to a partner – not provided