Fewpal
0 votes
31 views
in Accounts by (15 points)
How will a firm deal with a situation when its partnership deed provides for interest on capital, but the profit
earned by it is not enough to do so at the rate mentioned in the deed?

Please log in or register to answer this question.

1 Answer

0 votes
by (49.8k points)

When partnership deed provides for interest on capital but the profit to be earned buy the firm is not enough to do so, then profit is distributed in the ratio of interest on capital of each partner instead profit sharing ratio.

Related questions

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

...