Calculation of interest on capital:
Subha:
On opening capital = 36,000 \(\times\) \(\frac{5}{100}\) = Rs. 1,800
Sudha:
On opening capital = 52,000 \(\times\) \(\frac{5}{100}\) = Rs. 2,600

Calculation of Interest on capital:
Begum:

Fathima:

(1) Name of the firm and nature and place of business.
(2) Date of commencement and duration of business
(3) Names and addresses of all partners
(4) Capital contributed by each partner
(5) Profit sharing ratio
(6) Rate of interest to be allowed on capital

(i) No interest on capital is payable to any partner
(ii) No interest is chargeable on drawings made by the partner
(iii) Profits should be distributed equally
(iv) No remuneration is payable to any partner
(v) Interest on loan is payable at 6% per annum of Rs. 50,000

If there is no partnership deed- or when there is no express statement in the partnership deed, then the following provisions of the act will apply
(i) Remuneration to partners:
No salary or remuneration is allowed to any partner (Section 13(a))
(ii) Profit sharing ratio:
Profits and losses are to be shared by the partners equally [section 13(b)]
(iii) Interest on capital:
No interest is allowed on the capital, where a partner is entitled to interest on capital contributed as per partnership deed, such interest on capital will be payable only out of profits. [section 13(c)]
(iv) Interest on loans advanced by partners to the firm:
Interest on loan is to be allowed at the rate of 6 per cent annum. [section 13(d)]
(v) Interest on drawings:
No interest is charged on the drawings of the partners.