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A,B and C entered into partnership with no agreement as to sharing profits and contribute ₹1,00,000 ₹ 80,000 and ₹70,000 respectively as capital .C advance a lone of ₹50,000 to the firm . state that :(1) how do they share profit ( 2) what rate of interest is given on C s loan ( 3) for taking part in management .B claims a salary of ₹6,000 per annum. is he entitled to it ?
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A,B and C entered into partnership with no agreement as to sharing pro...
Sharing of Profit
- As there is no agreement regarding sharing of profit, it will be shared equally among the partners.
- Therefore, A, B and C will share the profit in the ratio of 1:1:1.
Rate of Interest on C's Loan
- Since there is no agreement regarding the rate of interest on C's loan, it will be calculated at a reasonable rate.
- The reasonable rate of interest is generally considered to be 6% per annum.
- Therefore, C's loan of ₹50,000 will attract an interest of ₹3,000 per annum.
Salary to B
- As there is no agreement regarding the salary of partners, it will only be given if the partnership deed permits it.
- If the partnership deed permits the payment of salary to partners, then B is entitled to a salary of ₹6,000 per annum.
- However, if the partnership deed does not permit the payment of salary to partners, then B is not entitled to a salary.
Key Notes - Accounting for Partnership Firms: Fundamentals
- Partnership is a type of business organization where two or more individuals come together to carry on a business.
- The partnership firm is not a separate legal entity from its partners.
- The partnership deed is a written agreement between the partners which contains the terms and conditions of the partnership.
- The capital contributed by the partners is used for the business operations.
- The profits and losses of the firm are shared among the partners in the agreed ratio.
- Interest on capital, salary to partners and commission to partners are allowed if the partnership deed permits it.
- The partnership firm is required to maintain proper books of accounts and prepare financial statements such as profit and loss account and balance sheet.
- As there is no agreement regarding sharing of profit, it will be shared equally among the partners.
- Therefore, A, B and C will share the profit in the ratio of 1:1:1.
Rate of Interest on C's Loan
- Since there is no agreement regarding the rate of interest on C's loan, it will be calculated at a reasonable rate.
- The reasonable rate of interest is generally considered to be 6% per annum.
- Therefore, C's loan of ₹50,000 will attract an interest of ₹3,000 per annum.
Salary to B
- As there is no agreement regarding the salary of partners, it will only be given if the partnership deed permits it.
- If the partnership deed permits the payment of salary to partners, then B is entitled to a salary of ₹6,000 per annum.
- However, if the partnership deed does not permit the payment of salary to partners, then B is not entitled to a salary.
Key Notes - Accounting for Partnership Firms: Fundamentals
- Partnership is a type of business organization where two or more individuals come together to carry on a business.
- The partnership firm is not a separate legal entity from its partners.
- The partnership deed is a written agreement between the partners which contains the terms and conditions of the partnership.
- The capital contributed by the partners is used for the business operations.
- The profits and losses of the firm are shared among the partners in the agreed ratio.
- Interest on capital, salary to partners and commission to partners are allowed if the partnership deed permits it.
- The partnership firm is required to maintain proper books of accounts and prepare financial statements such as profit and loss account and balance sheet.
Community Answer
A,B and C entered into partnership with no agreement as to sharing pro...
No, cause in the absence of partnerships agreement according to partnership act 1932 partners is not entitled to salary.
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A,B and C entered into partnership with no agreement as to sharing profits and contribute ₹1,00,000 ₹ 80,000 and ₹70,000 respectively as capital .C advance a lone of ₹50,000 to the firm . state that :(1) how do they share profit ( 2) what rate of interest is given on C s loan ( 3) for taking part in management .B claims a salary of ₹6,000 per annum. is he entitled to it ? Related: Key Notes - Accounting for partnership firms: Fundamentals?
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A,B and C entered into partnership with no agreement as to sharing profits and contribute ₹1,00,000 ₹ 80,000 and ₹70,000 respectively as capital .C advance a lone of ₹50,000 to the firm . state that :(1) how do they share profit ( 2) what rate of interest is given on C s loan ( 3) for taking part in management .B claims a salary of ₹6,000 per annum. is he entitled to it ? Related: Key Notes - Accounting for partnership firms: Fundamentals? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A,B and C entered into partnership with no agreement as to sharing profits and contribute ₹1,00,000 ₹ 80,000 and ₹70,000 respectively as capital .C advance a lone of ₹50,000 to the firm . state that :(1) how do they share profit ( 2) what rate of interest is given on C s loan ( 3) for taking part in management .B claims a salary of ₹6,000 per annum. is he entitled to it ? Related: Key Notes - Accounting for partnership firms: Fundamentals? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A,B and C entered into partnership with no agreement as to sharing profits and contribute ₹1,00,000 ₹ 80,000 and ₹70,000 respectively as capital .C advance a lone of ₹50,000 to the firm . state that :(1) how do they share profit ( 2) what rate of interest is given on C s loan ( 3) for taking part in management .B claims a salary of ₹6,000 per annum. is he entitled to it ? Related: Key Notes - Accounting for partnership firms: Fundamentals?.
A,B and C entered into partnership with no agreement as to sharing profits and contribute ₹1,00,000 ₹ 80,000 and ₹70,000 respectively as capital .C advance a lone of ₹50,000 to the firm . state that :(1) how do they share profit ( 2) what rate of interest is given on C s loan ( 3) for taking part in management .B claims a salary of ₹6,000 per annum. is he entitled to it ? Related: Key Notes - Accounting for partnership firms: Fundamentals? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A,B and C entered into partnership with no agreement as to sharing profits and contribute ₹1,00,000 ₹ 80,000 and ₹70,000 respectively as capital .C advance a lone of ₹50,000 to the firm . state that :(1) how do they share profit ( 2) what rate of interest is given on C s loan ( 3) for taking part in management .B claims a salary of ₹6,000 per annum. is he entitled to it ? Related: Key Notes - Accounting for partnership firms: Fundamentals? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A,B and C entered into partnership with no agreement as to sharing profits and contribute ₹1,00,000 ₹ 80,000 and ₹70,000 respectively as capital .C advance a lone of ₹50,000 to the firm . state that :(1) how do they share profit ( 2) what rate of interest is given on C s loan ( 3) for taking part in management .B claims a salary of ₹6,000 per annum. is he entitled to it ? Related: Key Notes - Accounting for partnership firms: Fundamentals?.
Solutions for A,B and C entered into partnership with no agreement as to sharing profits and contribute ₹1,00,000 ₹ 80,000 and ₹70,000 respectively as capital .C advance a lone of ₹50,000 to the firm . state that :(1) how do they share profit ( 2) what rate of interest is given on C s loan ( 3) for taking part in management .B claims a salary of ₹6,000 per annum. is he entitled to it ? Related: Key Notes - Accounting for partnership firms: Fundamentals? in English & in Hindi are available as part of our courses for Commerce.
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ample number of questions to practice A,B and C entered into partnership with no agreement as to sharing profits and contribute ₹1,00,000 ₹ 80,000 and ₹70,000 respectively as capital .C advance a lone of ₹50,000 to the firm . state that :(1) how do they share profit ( 2) what rate of interest is given on C s loan ( 3) for taking part in management .B claims a salary of ₹6,000 per annum. is he entitled to it ? Related: Key Notes - Accounting for partnership firms: Fundamentals? tests, examples and also practice Commerce tests.
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