In the absence of partnership deed the following rule will apply
(a) No Interest on capital
(b) Profit sharing on capital ratio
(c) Profit share is based salary to working partners
(d) 9% interest on drawing
Answers
Answer:in the absence of deed :->
No interest on capital provided
No interest on drawings charged
Profit sharing ratio will be equall
Partners are entitled for 6% interest on loan
No interest taken from partner if firm given loan to partner
Amount of rent of any partner for premises should provided at any case whether loss or inadequate profit
Explanation:
Answer:
In the absence of any partnership deed the following rules will apply:
* profits and losses are to be shared equally
* no interest is to bd allowed on capitals
* no interest is to be charged on drawings
* no partners is entitled to any salary of commission for taking part in running the firm's business
* partners is entitled to interest on the rate 6% on the loan given by to the firm
* each partner can participate in the conduct of business
Explanation:
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