Question

A and B are partners in a firm sharing profits in the ratio of 3: 2. Mrs. A has given a loan of

20,000 to the firm and the firm had also taken a loan ofR 10,000 from B. The firm was dissolved

and its assets were realised for T 25,000. State the order of payment of Mrs. A's loan and B's

loan with reason, if there were no other creditors of the firm​

Answer 1

Explanation:

Interest Payable to A - Rs.30,000×3/5×6/100×6/12=Rs.540

Interest Payable to B - Rs.30,000×2/5×6/100×6/12=Rs.360.

According to the Indian Partnership Act, 1932, interest @ 6% p.a. is payable on the amount of loan given by partners. In the present case, interest will be payable for 6 months, i.e., from 1st October, 2017 to 31st March, 2018.