How do you treat the followings in the absence of partnership deed ?
a) Interest on Capital.
b) Interest on Drawings.
c) Interest on Partner's Loan
d) Distribution of profits losses
e) Salary to partners.
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
amount of capital contributed by partners
(e) Interest on Partners’ Drawings No Interest will be charged on the Drawings of Partners