what percentage of the partners’ capital is charged interest on without a partnership deed?

The answer is: 0% of the partners’ capital is charged interest on when there is no partnership deed.

Quick Scoop

When a partnership runs without a written partnership deed , the default rules of the Indian Partnership Act, 1932 apply. Under these rules:

• No interest is allowed or charged on partners’ capital.

• Partners share profits and losses equally , not in the capital ratio.

• Interest at 6% per annum is allowed only on loans given by partners to the firm , not on their capital.

So, if your exam or textbook question asks:

“What percentage of the partners’ capital is charged interest on without a partnership deed?”

You should write:

0% – no interest is charged or allowed on partners’ capital in the absence of a partnership deed.

Bottom note: Information gathered from public forums or data available on the internet and portrayed here.