• Distribution in the absence of Partnership Deed
6. On 1st January, 2018 A and B are partners employing capital of 1,00,000 and
31.20.000 respectively. On the same day 'A' geve a loan to the form of 45,000. The
profit of that year is 45,000. How will you divide the profit between the partners in the
absence of partnership agreement ? Show by preparing profit and loss account
Answers
Answered by
0
Working Notes:
WN 1 Calculation of Interest on Loan
As per the Partnership Act, if there is no partnership agreement regarding rate of interest on loan, it is provided at 6% p.a.
Amount of Loan = Rs 8,000
Time Period (from October 01 to March 31) = 6 months
WN 2 Calculation of Profit Share of each Partner
In the absence of partnership deed, profits of a firm are distributed equally among all the partners.
Profit after Interest on A’s loan = 15,000 − 240 = Rs 14,760
Attachments:
Similar questions