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If partners are running a business without a partnership deed how much interest on their capitals will be given?
- a)Only for 6 months @ 6% p.a.
- b)6% p.a. on capital
- c)No interest on capital
- d)10 % p.a. on capital
Correct answer is option 'C'. Can you explain this answer?
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If partners are running a business without a partnership deed how much...
Partners are entitled to interest on capital only if rate of interest is mentioned in the partnership deed. But in this case business is continued without partnership deed. As per the Partnership Act, 1932, partners are enttiled to interest on capital only when there is partnership deed and rate of interest is mentioned in it.
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If partners are running a business without a partnership deed how much...
Interest on capital without a partnership deed
Interest on capital is the return given to partners on the amount they have invested in the business. In the absence of a partnership deed, the interest on capital will not be given to the partners. Here's why:
No agreement on interest rate:
- Without a partnership deed, there is no agreement on the interest rate that will be paid on the partner's capital.
- As a result, partners cannot claim any interest on the capital they have invested.
No legal obligation:
- In the absence of a partnership deed specifying the interest rate on capital, partners do not have a legal right to claim interest on their capital.
- The law does not require partners to be paid interest on their capital if there is no partnership deed in place.
No grounds for calculation:
- Without a partnership deed, there may be ambiguity regarding the calculation of interest on capital.
- Partners may not have a clear basis for determining how much interest they are entitled to receive.
Conclusion:
In conclusion, when partners are running a business without a partnership deed, no interest on their capitals will be given. It is essential for partners to have a partnership deed in place to avoid any confusion or disputes regarding the payment of interest on capital.
Interest on capital is the return given to partners on the amount they have invested in the business. In the absence of a partnership deed, the interest on capital will not be given to the partners. Here's why:
No agreement on interest rate:
- Without a partnership deed, there is no agreement on the interest rate that will be paid on the partner's capital.
- As a result, partners cannot claim any interest on the capital they have invested.
No legal obligation:
- In the absence of a partnership deed specifying the interest rate on capital, partners do not have a legal right to claim interest on their capital.
- The law does not require partners to be paid interest on their capital if there is no partnership deed in place.
No grounds for calculation:
- Without a partnership deed, there may be ambiguity regarding the calculation of interest on capital.
- Partners may not have a clear basis for determining how much interest they are entitled to receive.
Conclusion:
In conclusion, when partners are running a business without a partnership deed, no interest on their capitals will be given. It is essential for partners to have a partnership deed in place to avoid any confusion or disputes regarding the payment of interest on capital.
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If partners are running a business without a partnership deed how much interest on their capitals will be given?a)Only for 6 months @ 6% p.a.b)6% p.a. on capitalc)No interest on capitald)10 % p.a. on capitalCorrect answer is option 'C'. Can you explain this answer?
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If partners are running a business without a partnership deed how much interest on their capitals will be given?a)Only for 6 months @ 6% p.a.b)6% p.a. on capitalc)No interest on capitald)10 % p.a. on capitalCorrect answer is option 'C'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about If partners are running a business without a partnership deed how much interest on their capitals will be given?a)Only for 6 months @ 6% p.a.b)6% p.a. on capitalc)No interest on capitald)10 % p.a. on capitalCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If partners are running a business without a partnership deed how much interest on their capitals will be given?a)Only for 6 months @ 6% p.a.b)6% p.a. on capitalc)No interest on capitald)10 % p.a. on capitalCorrect answer is option 'C'. Can you explain this answer?.
If partners are running a business without a partnership deed how much interest on their capitals will be given?a)Only for 6 months @ 6% p.a.b)6% p.a. on capitalc)No interest on capitald)10 % p.a. on capitalCorrect answer is option 'C'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about If partners are running a business without a partnership deed how much interest on their capitals will be given?a)Only for 6 months @ 6% p.a.b)6% p.a. on capitalc)No interest on capitald)10 % p.a. on capitalCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If partners are running a business without a partnership deed how much interest on their capitals will be given?a)Only for 6 months @ 6% p.a.b)6% p.a. on capitalc)No interest on capitald)10 % p.a. on capitalCorrect answer is option 'C'. Can you explain this answer?.
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If partners are running a business without a partnership deed how much interest on their capitals will be given?a)Only for 6 months @ 6% p.a.b)6% p.a. on capitalc)No interest on capitald)10 % p.a. on capitalCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for If partners are running a business without a partnership deed how much interest on their capitals will be given?a)Only for 6 months @ 6% p.a.b)6% p.a. on capitalc)No interest on capitald)10 % p.a. on capitalCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of If partners are running a business without a partnership deed how much interest on their capitals will be given?a)Only for 6 months @ 6% p.a.b)6% p.a. on capitalc)No interest on capitald)10 % p.a. on capitalCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
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