Sarthaks APP
0 votes
35.7k views
in Accounts by (64.1k points)

Aakriti and Bindu entered into partnership for making garment on April 01, 2006 without any Partnership agreement. They introduced Capitals of Rs. 5,00,000 and Rs. 3,00,000 respectively on October 01, 2006. Aakriti Advanced. Rs, 20,000 by way of loan to the firm without any agreement as to interest. Profit and Loss account for the year ended March 2007 showed profit of Rs, 43,000. Partners could not agree upon the question of interest and the basis of division of profit. 

You are required to divide the profits between them giving reason for your solution

1 Answer

0 votes
by (106k points)
selected by
 
Best answer

In the absence of any agreement between partners

(i) Interest on partners loan is allowed @ 6% pa.

(ii) Interest on capital shall not be allowed.

(iii) Profits are to be distributed equally.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...