[ISC] Q. 1 Solution of Fundamentals of Partnership TS Grewal ISC 2023-24 Edition

Ramesh, Mahesh and Suresh are partners since 1st April, 2022 but do not have a Partnership Deed. They introduced capitals of ₹ 10,00,000, ₹ 8,00,000 and ₹ 6,00,000 respectively. Mahesh introduced further capital of ₹ 4,00,000 on 1st October, 2022. Whereas Suresh advanced ₹ 4,00,000 to the firm on 1st October, 2022. Business of the firm is being carried from the premises owned by Ramesh for a yearly rent of ₹ 1,20,000. Disputes have arisen among them on the following issues:

1. (i) Mahesh wants that he should be paid interest @ 10% p.a. on his additional capital as his capital is more than the other partners.
2. (ii) Ramesh wants that he should be paid salary of ₹ 10,000 per month as he is devoting more time to the business.
3. (iii) Suresh wants that he should be allowed interest on loan at the lending rate of the banks, which is 12% p.a.
4. (iv) Ramesh has withdrawn ₹ 1,00,000 from the firm for his personal use. Mahesh and Suresh want that Ramesh should be charged interest on his drawings @ 10% p.a.
5. (v) Mahesh wants that profit should be shared by the partners in the ratio of capitals.

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