MyQuestionIcon

1

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

Partnership Deed

If the deed i...

Question

If the deed is silent, and we have to charge against profit in what ratio we will charge??

Open in App

Solution

Dear Student
It is assumed that you are asking if partnership deed is silent,in which ratio will the profits be charged.
As per Partnership Act,1932, if partnership deed is silent about the profit sharing ratio of partners,the profit will be shared equally among them.
Regards

Suggest Corrections

thumbs-up

0

Similar questions

Q. If a charge is moved against repulsion we are

X

Y

are partners sharing profits and losses in the ratio of

2 : 3

with capitals of

R s . 2, 00, 000

R s . 1, 00, 000

respectively. Pass the necessary Journal entry or entries for distribution of profit/loss for the year ended 31st March, 2018 in each of the alternative cases:
Case 1. If Partnership Deed is silent as to the interest on capital and the profit for the year is

R s . 20, 000

.
Case 2. If Partnership Deed provides for interest on capital @

6 %

p.a. and loss for the year is

R s . 15, 000

.
Case 3. If Partnership Deed provides for-interest on capital @

6 %

p.a. and the profit for the year is

R s . 21, 000

.
Case 4. If Partnership Deed provides for interest on capital @

6 %

p.a. as a charge on profit and the profit for the year is

R s . 20, 000

.
Case 5. If Partnership Deed provides for interest on capital @

6 %

p.a. as a charge on profit and the profit for the year is

R s . 2, 000

.
Case 6. If Partnership Deed provides for interest on capital @

6 %

p.a. as a charge on profit and the profit for the year is

R s . 18, 000

Q. On an isolated system we first put +3C of charge and after that we put +6C of charge and again we put -15C of charge. What will be the net amount of charge on the system?

Q. Why we take only two dry objects to explain the flow of charge. What will happen if we take a wet object?

A

B

R s . 4, 00, 000

R s . 2, 00, 000

respectively as capital on which they agree to pay interest @

6 %

p.a. Their respective share of profit is

2 : 3

and the profit (before interest) for the year is

R s . 30, 000

. Show the relevant account to allocate interest on capitals:
(i) if the Partnership Deed is silent about the treatment of interest on capital, and
(ii) if interest is a charge as per the Partnership Deed.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Analysing Capital Accounts

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Partnership Deed

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon