08 February 2016
Hello Sir ,In a parnership firm , a party have invested a specific amount for business ,will he be a financing partner ? And whether the profits be distributed to party as ' interest ' . ??
08 February 2016
The choice is with the partners. They need to decide it MUTUALLY. It can partake any shape either interest or share in profit or both.
08 February 2016
Thank you sir for your reply.But if the financing party is not mentioned in partners deed as a partner ,whether profits can be distributed in same way ??
08 February 2016
Thank you Sir for your reply.But if the financing party in not mentioned as a partner in deed,whether the profits of firm can be distributed in same way..?
08 February 2016
Thank you Sir for your reply.But if the financing party in not mentioned as a partner in deed,whether the profits of firm can be distributed in same way..?
08 February 2016
No. In that case,, since the party is NOT a partner, and hence can not be the rightful owner of share of profit. (Please note that the method of calculation of interest may be based upon the amount of profit.)
CAclubindia
