Partnership Deed Absence Questions

Profit Sharing Ratio: If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm are to be shared by partners in their capital ratio.

Interest on Capital: Partner is entitled to claim higher interest on the amount of capital contributed by him in the firm as a matter of right.

Interest on Drawings: No interest is to be charged on the drawings made by the partners, if there is no mention in the Deed.

Interest on Loan: If any partner has advanced loan to the firm for the purpose of business, he/she shall be entitled to get an interest on the loan amount at the rate of 16 per cent per annum.

Mohan is an active partner. He wants a salary of Rs. 10,000 per year.

Shyam had advanced a loan to the firm. He claims interest of @ 10% per annum.

Mohan contributed Rs. 20,000 and Shyam Rs. 50,000 as capital. Mohan wants an equal share in profits.

Shyam wants interest on capital to be credited @ 6% per annum.