CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Shares

Chander and S...

Question

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.

Open in App

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%).

Suggest Corrections

thumbs-up

0

Similar questions

A

B

are partners in a firm without a Partnership Deed.

A

is an active partner and claims a salary of

R s . 18, 000

per month. State with reason whether the claim is valid or not.

Q. Somesh and Ramesh are partners in a firm with capitals of

R s . 3, 00, 000

R s . 4, 00, 000

respectively. They do not have a Partnership Deed. Ramesh wants to share the profits in the ratio of capitals. State with reasons whether the claim is valid.

Q. (Provisions of the Indian Partnership Act, 1932).

A, B

C

are partners in a firm. They do not have a Partnership Deed.
(i)

A

, who has contributed more capital than other partners, demands interest on capital at

10 % p . a

B

C

do not agree with this.
(ii)

B

has devoted full time to run the business and demands a salary of

R s . 5, 000 p . m

A

C

do not agree with him.
(iii)

C

demands interest on the loan of

R s . 50, 000

advanced by him at the market rate of interest which is

12 % p . a

A

R s . 10, 000

from the firm for personal use.

B

C

demand that interest should be charged @

10 %

per annum.
(v) Net Profit before taking into account any of the above claims amounted to

R s . 50, 000

at the end of the first year of the business.

A

demands share of profit in the capital ratio.
How will the disputes be settled?

Q. (Provisions of the Indian Partnership Act, 1932).

X

Y

are partners in a firm. They do not have Partnership Deed. What shall be the position in the following cases?
(i)

X

devotes more time than

Y

in the business.

X

claims that he should get a salary of

R s .6, 000

per month for it.
(ii)

Y

has provided a capital of

R s . 50, 000

X

R s . 5, 000

only as capital.

X

, however, has advanced

R s . 10, 000

as loan to the firm. What interest, if any, will be given to

X

Y

X

wants to introduce his son

Z

into their business.

Y

objects to his proposal.
(iv)

Y

wants that profit should be distributed in the ratio of the capitals but

X

wants that it should be distributed equally.

A

B

entered into partnership on 1st April, 2017 without any Partnership Deed. They introduced capitals of

R s . 5, 00, 000

R s .3, 00, 000

respectively. On 31st October, 2017,

A

R s . 2, 00, 000

by way of loan to the firm without any agreement as to interest. The Profit and Loss Account for the year ended 31st March, 2018 showed a profit of

R s . 4, 30, 000

, but the partners could not agree upon the amount of interest on loan to be charged and the basis of division of profits.
Pass a Journal entry for distribution of the profit between the partners and prepare Capital Accounts of both the partners and Loan Account of

A

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Shares

MATHEMATICS

Watch in App

explore_more_icon

Explore more

Standard X Mathematics

Join BYJU'S Learning Program

CrossIcon