Introduction to partnership accounts

Tarun, The question clearly states that there was no agreement on tne issue. The partnership act 1932 provides that if there is no deed, 1. Partners are not entitled to 1a. Any salary 1b. Interest on capital or, 1c. Interest on drawings. 2. The profit sharing ratio shall be equal. 3. Interest on partner's loan can be allowed @ 6%. Hence, y s claim for 24% cannot be allowed. Interest on loan to y rs.4800(80000*6%) is allowed to y first. The remaining profit rs.1200(6000-4800) is divided equally among the three. Hence, x gets 400, y gets 5200(4800+400) and z gets 400.