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Partnership- interest on capital

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10 March 2014 I was finalising accounts of one firm. what is the maximum interest that can be allowed on capital? since net profit is 24032.9 And partner's opening capital is 853901.63. last year 12% was charged on capital and if I charge the same % then it goes into loss and no salary can be paid. can I charge 1% on partner's opening capital?

10 March 2014 that should be decided mutually bet partners wat they had given in deed u need to charge that.

10 March 2014 12% is the upper limit.

Interest should not exceed 12%.

However it can be less than 12%




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