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Partners interest on capital

This query is : Resolved 

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Querist : Anonymous

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Querist : Anonymous (Querist)
23 December 2016 Dear EXPERTS.,

How to calculate Interest on Partners capital...?

For example Two partners Invest Each 5,00,000/-. After few years their Capital amounts are maintain Capital A/c and Current A/c... If Their Capital Amount are (Invest CApital Rs. 5,00,000 and Current Account amounts are each XXXXX)

In this position., How to calculate Interest

Thanks in Advance

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Expert : Anonymous

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Expert : Anonymous (Expert)
23 December 2016 kindly read partnership deed & check whether interest to be provided on current or fixed capital

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Expert : Anonymous

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Expert : Anonymous (Expert)
23 December 2016 As per me you should provide interest on fixed capital

23 December 2016 Maximum interest allowable as per partnership Act Simple interest of 12% excess amount is disallowed. Partnership deed clause should permit % interest to be given on capital.

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Querist : Anonymous

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Querist : Anonymous (Querist)
24 December 2016 Thank you Experts...
In your view the Interest calculate only Fixed Capital. Fixed capital means 'when start the business at the time capital invest'. Am I right Sir...



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