on 1june 2O18 a partner introduce in the firm additional capital 5O,OOO. In the absence of partnership deed,on 31st March 2O19 he will received intrest??
Please help!!
Answers
Explanation:
ANSWER
As there is no partnership deed,some provisions of the Indian Partnership Act,1932 shall apply. Partners are not entitled to any interest on the capital contributed by them and cannot withdraw any salary for the work done by them for the business. They are eligible for interest on any loan advanced by them to the firm @ 6%p.a.
Profits should be shared equally irrespective of the amount of capital contributed.
Hence,the distribution of profits should be carried out in the following ways:-
Net profit as per profit& loss Account = 15,000
Less: interest on A's loan = 8,000*6%*6/12 = 240
profits remaining = 14,760
Share of profits
A = 7,380
B= 7,380
Profit Remaining = 14,760
so ,
share of A = 7380
share of B = 7380