In the absence of Partnership Deed, what are the rules relation to :
(a) Salaries of partners,
(b) Interest on partners’ capitals
(c) Interest on partners’ loan
(d) Division of profit, and
(e) Interest on partners’ drawings

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Solution

Items (Points) Provision in the Absence of Partnership Deed

(a) Salaries of Partners No Salary will be allowed to Partners.

(b) Interest on Partners’ Capitals No interest will be allowed to Partners on Capital

(c) Interest on Partners’ Loan 6% p.a. Interest will be allowed on the amount given by
partners in the form of Loans and Advances to firm.

(d) Division of Profit Profits will be shared equally, it is irrespective the
amount of capital contributed by partners

(e) Interest on Partners’ Drawings No Interest will be charged on the Drawings of Partners

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Similar questions

In the absence of partnership deed, specify the rules relating to the following

(i) Sharing of profits and losses (ii) Interest on partner's capital

(iii) Interest on partner's drawings (iv) Interest on partner's loan

(v) Salary to a partner

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	Items (Points)	Provision in the Absence of Partnership Deed
(a)	Salaries of Partners	No Salary will be allowed to Partners.
(b)	Interest on Partners’ Capitals	No interest will be allowed to Partners on Capital
(c)	Interest on Partners’ Loan	6% p.a. Interest will be allowed on the amount given by partners in the form of Loans and Advances to firm.
(d)	Division of Profit	Profits will be shared equally, it is irrespective the amount of capital contributed by partners
(e)	Interest on Partners’ Drawings	No Interest will be charged on the Drawings of Partners