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Chander and S...

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Chander and Suman are partners in a firm without a Partnership Deed. Chander's capital is $R s . 10, 0000$ and Suman's capital is $R s . 14, 000$ . Chander has advanced a loan of $R s . 5, 000$ and claims interest $@ 12 % p . a .$ on it. State with reasons whether his claim is valid or not.

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Solution

Even if the partnership deed does not exist, partners are still entitled to Interest on loan advanced by them.They are not entitled to interest on capital contributed by them.
Interest on loan advanced by them is payable @ 6%p.a and even if there is a loss.
So,claim of Chander interest @12%p.a is invalid. His interest amount will be Rs300 (5000*6%).

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