Question

$A$ and $B$ are partners in a firm sharing profits in the ratio of $3:2$. 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 interest on loans from partners. Compute interest payable by the firm to the partners, assuming the firm closes its books every year on 31st March.

Answer 1

Interest Payable to $A$ - $Rs.30,000\times 3/5\times 6/100\times 6/12=Rs.540$
Interest Payable to $B$ - $Rs.30,000\times 2/5\times 6/100\times 6/12=Rs.360.$
According to the Indian Partnership Act, 1932, interest @ 6% p.a. is payable on the amount of loan given by partners. In the present case, interest will be payable for 6 months, i.e., from 1st October, 2017 to 31st March, 2018.