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remuneration and interest to partner

anujbirla (none) (37 Points)

15 July 2018

is it necessary to pay remuneration and interest to partners in partnership firm

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Pranjal Arora (Student) (6 Points)
Replied 15 July 2018

▪RENUMERATION is generally payable to those partners who are actively contributing in the functioning of the partnership firm.
▪INTEREST is normally paid to the partners in the respect of capital invested by them in the partnership firm.

But in case of sleeping partners it depends upon the terms and conditions of the partnership agreement.