Question 1:
In the absence of Partnership Deed, what are the rules related to:
(a) Salaries of partners,
(b) Interest on partners’ capitals
(c) Interest on partners’ loan
(d) Division of profit,
(e) Interest on partners’ drawings
(f) Interest on loan by partner(s) and
(g) Interest on loan to partners?
Answer 1:
|
|
Items
(Points) |
Provision
in the Absence of Partnership Deed |
|
(a) |
Salaries of Partners |
No
Salary will be allowed to Partners. |
|
(b) |
Interest on Partners’ Capitals |
No
interest will be allowed to Partners on Capital |
|
(c) |
Interest on Partners’ Loan |
6%
p.a. Interest will be allowed on the amount given by partners
in the form of Loans and Advances to firm. |
|
(d) |
Division of Profit |
Profits
will be shared equally; it is irrespective the |
|
(e) |
Interest on Partners’ Drawings |
No
Interest will be charged on the Drawings of Partners |
|
(f) |
Interest on loan by partner |
Allowed @ 6% p.a. to partners |
|
(g) |
Interest on loan to partner |
Not charged from partner |
Question 2:
Following differences have arisen among P, Q and R. State who is correct in each case:
(a) P used ₹ 20,000 belonging to the firm and made a profit of ₹ 5,000. Q and R want the amount to be given to the firm?
(b) Q used ₹ 5,000 belonging to the firm and suffered a loss of ₹ 1000. He wants the firm to bear the loss?
(c) P and Q want to purchase goods from A Ltd., R does not agree?
(d) Q and R want to admit C as a partner, P does not agree?
(e) R had given a loan of ₹1,00,000 to the firm and demands interest @ 10% p.a. P and Q do not want to pay the interest.
Answer 2:
Explanation: As per Principal and Agent relationship, P is principal as well as agent to the firm and to Q and R. As per this rule, any profit earned by an agent (P) by using the firm’s property is attributable to the firm.
(b) Q is liable to pay ₹ 5,000 to the firm. As per the Partnership Act, 1932, every partner of a partnership firm is liable to the firm for any loss caused by his/her willful negligence.
Explanation: Here Q is solely responsible for the loss of ₹ 1,000 because he used the property of the firm and also represented himself as a principal rather than an agent to the other partners and to the firm.
(c) P and Q may buy goods from A Ltd.
Explanation: As per Partnership Act, 1932, a partner has a right to buy and sell goods without consulting the other partners unless a Public Notice has been given by the partnership firm to restrict the partners to buy and sell.
(d) C will not be admitted because one of the partners P has not agreed to admit C.
Explanation: According to the Partnership Act 1932, a new partner can be admitted into the firm only with the consent of all the existing partners unless otherwise agreed upon.
(e) P, Q, and R are not correct.
Explanation: As per Partnership Act, If there is no agreement between partners, Interest on Loan is allowed @ 6% p.a.
(e) P, Q, and R are not correct.
Explanation: As per Partnership Act, If there is no agreement between partners, Interest on Loan is allowed @ 6% p.a.
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