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Loan from Partners

Interest on l...

Question

Interest on loan by partners is not restricted to the profits of the firm.

A

True

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B

False

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Q. A and B are partners in a firm sharing profits in the ratio of 3 : 2. They had advanced to the firm a sum of ₹ 30,000 as a loan in their profit-sharing ratio on 1st October, 2017. The Partnership Deed is silent on interest on loans from partners. Compute interest payable by the firm to the partners, assuming the firm closes its books every year on 31st March.

Interest on loan by partners is to the profits of the firm.

Q. Why is Interest on Capital allowed by the firm to its partners, when the firm already given share in firm’s profit to partners ?

A

B

are partners in a firm sharing profits equally. They had advanced to the firm a sum of Rs. 30,000 as a loan in their profit-sharing ratio on 1st October, 2017. The Partnership Deed is silent on the question of interest on the loan from partners. Compute the interest payable by the firm to the partners, assuming the firm closes its books on 31st March each year.

Q. Rhea and Rhean are partners in a firm sharing profits and losses in the ratio of 2 : 1. Rhean provided a loan of ₹1,05,000 to the firm. Calculate interest on loan:

[2 marks]

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