Question

Akash, Bala, Chandru and Daniel are partners in a firm. There is no partnership deed. How will you deal with the following?

1. Akash has contributed maximum capital. He demands interest on capital at 10% per annum. 

2. Bala has withdrawn Rs. 3,000 per month. Other partners ask Bala to pay interest on drawings @ 8% per annum to the firm. But, Bala did not agree to it. 

3. Akash demands the profit to be shared in the capital ratio. But, others do not agree. 

4. Daniel demands a salary at the rate of Rs. 10,000 per month as he spends full time for the business. 

5. Loan advanced by Chandru to the firm is Rs. 50,000. He demands interest on loan @ 12% per annum.

Answer 1

1. No interest on capital is payable to any partner.

2. No interest is charged on drawing made by the partner. 

3. Profit should be distributed equally. 

4. No remuneration is payable to any partner. 

5. Interest on loan is payable at 6% per annum.