Question

In the absence of Partnership Deed, what are the rules relating to: 

a. Salaries of partners, 

b. Interest on partner’s capitals, 

c. Interest on partner’s loan, 

d. Division of profit, and e. Interest on partners’ drawings?

Answer 1

	Items	provision in the absence of partnership deed
(a)	salaries to partners	No salary will be allowed to partners.
(b)	Interest on partners	No interest will be allowed to partners on their capital
(c)	Interest on partner loan	6% p.a interest will be allowed on the money given by parters to the firm in the form of loans and advances
(d)	Distribution of profit	profits will be shared equally, irrespective of the amount of capital contributed by partners.
(e)	Interest on partner's drawins	No interest will be charged on the drawings of partnes.