How do you treat the following in the absence of partnership deed?what are the provisions of partnership Act Relevant for accounting???
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Explanation:
(a) Salaries of Partners No Salary will be allowed to Partners.
(b) Interest on Partners’ Capitals No interest will be allowed to Partners on Capital
(c) Interest on Partners’ Loan 6% p.a. Interest will be allowed on the amount given by partners in the form of Loans and Advances to firm.
(d) Division of Profit Profits will be shared equally, it is irrespective the
amount of capital contributed by partners
(e) Interest on Partners’ Drawings No Interest will be charged on the Drawings of Partners
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Partners will not get a salary. Interest on capital will not be payable. Drawings will not be chargeable with interest. Partners will get 6% p.a. interest on loans to the firm if they mutually agree.
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