In the absence of Partnership Deed, what are the rules relating to: a. Salaries of partners,
In the absence of Partnership Deed, what are the rules relating to:
a. Salaries of partners,
b. Interest on partner’s capitals,
c. Interest on partner’s loan,
d. Division of profit, and e. Interest on partners’ drawings?
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| Items | provision in the absence of partnership deed | |
| (a) | salaries to partners | No salary will be allowed to partners. |
| (b) | Interest on partners | No interest will be allowed to partners on their capital |
| (c) | Interest on partner loan | 6% p.a interest will be allowed on the money given by parters to the firm in the form of loans and advances |
| (d) | Distribution of profit | profits will be shared equally, irrespective of the amount of capital contributed by partners. |
| (e) | Interest on partner's drawins | No interest will be charged on the drawings of partnes. |
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