(i) Sharing of profits and losses.
(ii) Interest on partner’s capital.
(iii) Interest in Partner’s drawings.
(iv) Interest on Partner’s loan
(v) Salary to a partner.
— Kishore V, SME and ACW at Edumarz
Profits and losses are shared:
- In the absence of a partnership deed profit, the partners will share the profits equally.
Interest on the capital of a partner:
- In the absence of a partnership document, no interest will be paid on the capital of the partners.
Interest on Drawings by Partners:
- No interest on drawings will be levied on partners if there is no partnership document.
Interest on the Loan to Partners:
- If a partner offers a loan to the company without a partnership deed, he or she will be entitled to a predetermined rate of interest of 6% per year.
Partner’s Salary:
- In the absence of a partnership deed, a partner is entitled to payment for his job, even if the other partners are not working.