Question

State the provisions of Indian Partnership Act,1932 regarding interest on partner's capital and interest on partner's loan when there is no Partnership Deed.

Answer 1

According to the provisions of Indian Partnership Act,1932 , partners are not entitled to any interest on capital contributed by them. But they are entitled to receive interest on any amount advanced by them in excess of capital i.e loan advanced by them @ 6%p.a.This interest on loan shall be payable even if there is a loss in any year.