Question

Following differences have arisen among $P,Q$ and $R$. State who is correct in following case:
$P$ used $Rs.20,000$ belonging to the firm and made a profit of $Rs.5,000$. $Q$ and $R$ want the amount to be given to the firm?

Answer 1

In the given case, Q and R are correct.

According to partnership deed, Any partner should not make any secret profits by the use of belonging to the firm. Every partner must account for any benefits derived from the partnership business without the consent of other partners.

So, P should give the amount of Rs 20,000 belonging to the firm to the firm.