Question

40.
X and Y commenced business in partnership on 1st April, 2015. No partnership agreement was
made either oral or written. They contributed * 60,000 and 15,000 respectively as capital. In
addition, X also advanced * 40,000 on 1st October, 2015. Due to serious illness, X could not
attend the partnership business for 3 months from 1st July, 2015 to 30th September, 2015.
The profits for the year ended 31st March, 2016 amounted to * 70,000. Disputes have arises
between them for sharing of profits.
X claims :
(0) He should be given interest at 12% on capital and loan.
(ii) Profit should be distributed in proportion of capital.
Y claims :
(i) Net profit should be shared equally.
(ii) He should be allowed remuneration of 1,200 p.m. during the period of X's illness.
(iii) Interest on capital and loan should be given only at 6% p.a.
You are required to settle the dispute between them and distribute the profits according to law.
State
reasons for
your answer.
VA A. V 24 AM​

Answer 1

Explanation:

As it is mentioned that their is no partnership deed

X CLAIMS

1) he will not get any interest on capital and on loan the ROI will be 6%p.a

2) profil will be distributed equally

Y CLAIMS

1) yes, the profit shared equally

2) he will not get any remuneration as their is no partnership deed

3) he will not get intrest on cap. but yes the intrest on loan will be 6%