Question

$A$ and $B$ are partners in a firm sharing profits equally. They had advanced to the firm a sum of Rs. 30,000 as a loan in their profit-sharing ratio on 1st October, 2017. The Partnership Deed is silent on the question of interest on the loan from partners. Compute the interest payable by the firm to the partners, assuming the firm closes its books on 31st March each year.

Answer 1

Interest on partner's loan $=Rs.15,000\times \frac{6}{100}\times \frac{6}{12}=Rs.450$