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ABC entered into partnership with no agreement as to sharing profit and contributed 1 lakh 8000 and 70000 respectively as capital see advances alone of 50000 of the form state that how do they share profit and how rate of interest is given on cease loan and third question is for taking part in management b claims are salary of 6000 per annum is he entitled?
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ABC entered into partnership with no agreement as to sharing profit an...
Sharing of Profits
In the absence of a partnership agreement, profits are typically shared in proportion to the capital contributions made by each partner. Here, the capital contributions are:
- A: ₹1,00,000
- B: ₹80,000
- C: ₹70,000
The total capital contributed is ₹2,50,000.
- A's share: (1,00,000 / 2,50,000) × 100 = 40%
- B's share: (80,000 / 2,50,000) × 100 = 32%
- C's share: (70,000 / 2,50,000) × 100 = 28%
Thus, the profit-sharing ratio among A, B, and C will be 40:32:28.

Interest on Capital Advances
In most partnerships, partners are entitled to a certain rate of interest on their capital contributions and loans advanced to the firm. The typical rate of interest is:
- Generally 6% per annum, unless otherwise stated.
In this case, B has advanced ₹50,000 as a loan. Therefore, the interest payable to B on this amount would be calculated as follows:
- Interest = Principal × Rate × Time
- Interest = 50,000 × 6% × 1 = ₹3,000

Management Participation and Salary
Regarding B's claim for a salary of ₹6,000 per annum for participating in management, the following points are relevant:
- In a partnership without an explicit agreement, partners do not automatically receive a salary for participating in management.
- Salaries can only be claimed if it is mutually agreed upon or specified in the partnership deed.
Since there is no partnership agreement specifying B's entitlement to a salary, he is not entitled to the ₹6,000 salary.
In summary, profits are shared in proportion to capital contributions, interest on loans is generally 6%, and partners do not have a right to salaries unless agreed upon.
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ABC entered into partnership with no agreement as to sharing profit and contributed 1 lakh 8000 and 70000 respectively as capital see advances alone of 50000 of the form state that how do they share profit and how rate of interest is given on cease loan and third question is for taking part in management b claims are salary of 6000 per annum is he entitled?
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ABC entered into partnership with no agreement as to sharing profit and contributed 1 lakh 8000 and 70000 respectively as capital see advances alone of 50000 of the form state that how do they share profit and how rate of interest is given on cease loan and third question is for taking part in management b claims are salary of 6000 per annum is he entitled? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about ABC entered into partnership with no agreement as to sharing profit and contributed 1 lakh 8000 and 70000 respectively as capital see advances alone of 50000 of the form state that how do they share profit and how rate of interest is given on cease loan and third question is for taking part in management b claims are salary of 6000 per annum is he entitled? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for ABC entered into partnership with no agreement as to sharing profit and contributed 1 lakh 8000 and 70000 respectively as capital see advances alone of 50000 of the form state that how do they share profit and how rate of interest is given on cease loan and third question is for taking part in management b claims are salary of 6000 per annum is he entitled?.
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