General query on accounts

We are a partnership firm. It was started in 01.04.2016. During the last two months the one of the partner has spent from his personal account approx. 9,00,000/- for meeting partnership firm expenses as the Income from business is presently very low. Now we have a question in mind. Is it mandatory at this stage to pay Interest on loan to the partner. When we asked the partner he refused to take interest on loan on the plea since there is no income from business he will not take any interest on loan given by him to the partnership firm. Please advise whether its is at the discretion of the partner to take interest on loan or not or it is mandatory the interest on loan to be given to Partner. In case it is mandatory, shall we transfer this interest to Partner Current account.Please clarify.
Replies (2)

Its all depends upon the partnership deed

THERE IS NO INDICATION IN PARTNERSHIP DEED. WHAT TO DO???????????????????

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 04 September 2026
Accounts Executive

Hema Yashwanth & Associates

Chennai

B.Com

View Details
Company
ARTICLESHIP 24 August 2026
Chartered Accountant Articles

Rohit KC Jain & Co

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
21 August 2026
Finance Manager

Resollect Technologies Pvt Ltd

Mumbai

CA

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details