Qualification > Commerce

Does the Partnership Act completely override a partnership agreement or does it

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Ukhti-R:
Accounting. A2 CIE

Okay, to make it simple:
A partnership agreement between 2 partners provides for interest on capital, but does not give the profit sharing ratio.

According to the Partnership Act, the profit will now be shared equally. But my question is: does the interest on capital still hold? Do the partners still receive their interests? Does the Partnership Act completely override a partnership agreement or does it just supplement it?

P.S. I would prefer a logical explanation, or if can't be, a simple answer.

Thank you everyone. :)
Have a nice day~

elemis:
When I did Accounting in year 11 I used a textbook that was actually meant for college use.

The Partnership Act as per UK law is only taken into account if the partners DO NOT have a written Partnership Agreement.

For example, if Mr. A and B are arguing over the profit sharing ratio and considering they dont have a Partnership Agreement then profit is split equally as per the The Partnership Act.

Ukhti-R:
Thankk youuu! :D

Lol. Why not ? :P

elemis:

--- Quote from: Jump! on October 01, 2010, 10:03:05 am ---Thankk youuu! :D

Lol. Why not ? :P

--- End quote ---

I didnt think you did accounting :P

Ukhti-R:
I don't. ;)

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