Question

Sweta and Tripti are partners sharing profits and losses in the ratio of 2 : 1 with capitals of ₹ 3,00,000 and ₹ 2,00,000.

If the partnership deed is silent as to interest on capital and the profits for the year are ₹ 60,000, then Tripti’s share of interest on capital will be:

Options

• ₹ 18,000

• Nil

• ₹ 27,000

• ₹ 12,000

Answer 1

Nil

Explanation:

Interest on capital is not allowed if the partnership deed of the firm does not provide for interest on capital.