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Partnership Deed

A and B are p...

Question

A and B are partnres in a firm with a capital of 60000 each. Interest on capital is provided in partnership agreement but salient to rate of interest.Calculate interest on capital.

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Solution

A firm is liable to pay interest on partners' capital only if it is specifically mentioned in the partnership deed. It is allowed at a rate as mentioned in the partnership deed.
Generally, rate of interest on capital is specifically mentioned in the question. But in case it is not specified then no interest will be payable on capital.

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