Accounts
This query is : Resolved
18 August 2011
Can a partnership firm paid interest on capital without any written language at partnership deed ?
If in a partnership deed written for interest on capital 12 % p.a., But the year the firm can't arrange any sufficient profit to pay right interest on capital. So what is the treatment.
If in a partnership deed written for interest on capital 12 % p.a., But the year the firm can't arrange any sufficient profit to pay right interest on capital. So what is the treatment.
18 August 2011
As per section 4 of the Partnership act, the Interest will be provided only if the clause mentioned in partnership deed otherwise not interest on capital allowed
Even if provided in partnership deed, it will be provided only in case of profit not in loss
Even if provided in partnership deed, it will be provided only in case of profit not in loss
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