Interest on Partner Capital

If their is some provision relating to this clause in partnership deed then this will be applicable which means that if deed say that if capital is negative & thier sholud be intrest charged from the partner, then it will be otherwise not

Debit balance in the capital account would mean that "Drawings A/c" has is the same as capital account. In that case, the interest applicable will be "Interest on drawings".

Interest on Debit balance can charged only when specific clause is mentioned in the partnership deed.

interst  to be chargred accoring to your querry

hi...

i belive just because the part. deed does not has a cluase to effect drawing interest does not concludes its withholding the transaction....

if the firm is using loans to fund its operation and paying an interest over it then it should also charge for overutilisation of firms cash by its partners....

it can be observered that if the interest is paid by the firm on funds borrowed and the partner are withdrawing more then their account has then it can be considered as indirect way of borrowing funds by partners n paying interest through firm.

No interest can not be cherged on partner's drawings unless specifically mentioned in the partnership deed.

Vivek Naik

Interest on Capital will not be credited to partner's account and mean while

Interest on Drawing will be Dr . if the pertnership provides for the same :)