Interest calculation for partnership firm

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JEEVIKA AND CO (Querist)

13 December 2017 Respected Sir / Madam,

One Partnership partner's capital accounts is AY 2016-17 (Opening Balance)...
Mr. Raman :
Capital Account - Rs. 200,000 (Capital Introduced)
Current Account - Rs. 65000 (Capital received from PandL past Years)

Mr. James kannan : Capital Account - Rs. 200,000 (Capital Introduced)
Current Account - Rs. 65000 (Capital received from PandL past Years) in this way
How to I calculate Capital interest and which amount...?
The 12% will calculated Rs. 265000...? or Any other calculations...?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

13 December 2017 1. If method of calculation is mentioned in the partnership deed,go with that.

2. If not mentioned, calculate on daily balance outstanding.

Message likes : 1 times

JEEVIKA AND CO

JEEVIKA AND CO (Querist)

13 December 2017 Thank you for the reply Sir...
In partnership deed it's shown 12%....
My doubt is how to calculate the interest....!
it's flat rate...?
How to calculate interest? please give some examples

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