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

Not restricted

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Restricted

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Either A or B

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None of these

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Solution

The correct option is A
Not restricted

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

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A

and

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. 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.

Q. In order to not to bind the firm for all the acts done by a partner within the implied authority which has been restricted by mutual agreement between the partners, the firm need to establish that........

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[0.88 marks]

Anita and Nikita are partners in a firm sharing profits and losses equally. Nikita has granted a loan of ₹ 60,000 to the firm at 7%. Profit of the firm for the year is ₹2,500. Calculate the amount of interest on loan to be given to Nikita:

[2 marks]

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

The correct option is A Not restricted Interest on loan by partners is not restricted to the profits of the firm

The correct option is A
Not restricted

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