BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -In the absence of any agreement interest on advances by a partner is allowed at 6 percent p.a. and is allowed whether there is profit or no. Interest on loan is a charge and will be provided regardless of profits earned.

Detailed explanation-2: -In case if partner does not make agreement or deed, then partners are entitled for interest on loans and advances and their profit sharing ratio will be equal. They are not entitled for salary and commission.

Detailed explanation-3: -No Interest will be charged on the Drawings of Partners.

Detailed explanation-4: -In business law, contribution may refer to a capital contribution, which is money or assets given to a business or partnership by one of the owners or partners. The capital contribution increases the owner or partner’s equity interest in the entity.