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Hello Mike.
regarding the Partnership Act 1890. Is the following correct or have I made an error?:
Interest- none charged on capital accounts or credited on capital accounts. However there is a charge of 5% on loans and advances from the partner due to the partnership, over and above any agreed fixed capital.
Thank you.
Yup, you made an error!
“However there is a charge of 5% on loans and advances from the partner due to the partnership, over and above any agreed fixed capital.”
This is NOT what I said!!!
Interest at the rate of 5% per annum is payable (by the partnership) to a partner on loans and advances made (by the partner) to the firm over and above agreed fixed capital (unless, of course, they agree something different)
OK?
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