Question

A,B and C decided that interest on capitals will be provided to each partner@5% per annum,but after one year C wants that no interest on capital is to be provided to any partner.state how C can do this?

Answer 1

According to Partnership Act, C cannot stop on providing int on cap. He can do so only when all the other partners agree with him. If one partner doesn't agree then the interest will not be stopped, it will continue further.

Answer 2

Answer:

• The Partnership Act of 1932 mandates that no interest on capital shall be given to the firm's partners if the organization deed does not contain a provision for it.
• On the other hand, interest on money is only paid from earnings with both couples' consent.

Explanation:

• If one of the partners is eligible to receive interest on the money he has contributed, the interest would only be paid from profits.
• Since capital interest is an appropriation, only earnings would be used to pay it.
• The Partnership Act states that C is unable to avoid providing information over the limit.
• He could only do that with the approval of one of the other spouses.
• The interest will proceed if one of the partners does not agree.

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