Question

On 1st June, 2018 a partner introduced in the firm additional capital 50,000 In the absence of partnership deed, on 31st March, 2019 he will receive interest ?​

Answer 1

No, he will not receive any interest on capital.

• A partnership deed is an agreement between the partners of a firm in which the terms and conditions of partnership among the partners is written.
• When there's no Partnership deed, interest on capital will not be charged. The partners can not claim any interest in this case.

• Only if as per the partnership deed, interest is allowed:

• It will be paid only when there is profit.

• If loss, no interest will be paid.