Sharing of profit

Save Share

This query is : Resolved

abhi (Querist)

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 ' . ??

Amol S Joglekar

Amol S Joglekar (Expert)

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.

abhi

abhi (Querist)

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 ??

abhi

abhi (Querist)

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..?

abhi

abhi (Querist)

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..?

Amol S Joglekar

Amol S Joglekar (Expert)

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.)

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now