FUNDAMENTALS OF PARTNERSHIP FIRM TS GREWAL (2022-23) CBSE

QUESTION: 4

Bose, Sarkar and Chatterjee are partners in a firm and do not have a partnership deed. Bose introduced further capital of ₹ 5,00,000 on 1st October, 2021.

Whereas Chatterjee took a loan of ₹ 50,000 from the firm on 1st October, 2021. Disputes have arisen among them on the following issues:

a) Bose demands interest @ 10% p.a. on ₹ 5,00,000 being his extra capital.

b) Sarkar desires that his son Deep should be admitted as a partner and he will give his half of his share. Bose and Chatterjee do not agree.

c) Bose and Sarkar are of the view that Chatterjee should be charged interest on loan from the firm at the lending rate of the banks, which is 12% p.a.

d) Sarkar has withdrawn ₹ 50,000 from the firm for his personal use. Bose and Chatterjee are of the view that Sarkar should be charged interest @ 10% p.a.

You are required to give solution to each issue of dispute.

Answer:

Here is the solution to it.

a) In the case of the absence of a Partnership deed. Provisions of the Indian Partnership Act 1932 would apply. No interest on capital would be allowed.

b) Sarkar’s son Deed would not be admitted. as all partners do not agree. As in the case of absence of partnership deed. Provisions of the Indian Partnership Act 1932 would apply.

c) No interest of loan to Chatterjee from the firm is given as In the case of absence of Partnership deed. Provisions of the Indian partnership Act 1932 would apply.

d) No interest on drawing would be charged as in the case of absence of partnership deed. Provisions of the Indian Partnership Act 1932 would apply.