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