1.

Ravi, Sibi and Kumar are partners in a firm. There is no partnership deed. How will you deal with the following?(i) Ravi has contributed maximum capital. He demands interest on capital @ 10% per annum. (ii) Sibi demands the profit to be shared in the capital ratio. But, others do not agree. (iii) Loan advanced by Kumar to the firm is Rs. 50,000. He demands interest on loan @ 12% per annum.

Answer»

Since there is no partnership deed provisions of the Indian partnership Act 1932 will apply. 

(i) No interest on capital is payable to any partner. Therefore Ravi is entitled to the interest on capital 

(ii) Profits should be distributed equally 

(iii) Interest on loan is payable @ 6% p.a. of Rs. 50,000



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