Mahesh, Ramesh and Suresh are partners in a firm

2 :- Mahesh, Ramesh, and Suresh are partners in a firm. They do not have a Partnership Deed. At the end of the first year of the Business, they faced the following problems:
a) Mahesh wants that interest on capital should be allowed to the partners but Ramesh and Suresh do not agree.
b) Ramesh wants that the partners should be allowed to draw salaries but Mahesh and Suresh do not agree.
c) Mahesh and Ramesh want that Suresh should pay interest on the loan given to him by the firm but Suresh does not agree.
d) Mahesh and Ramesh having contributed larger amounts of capital, desire that the profits should be distributed in the ratio of their capital contribution but Suresh does not agree.
State how will these disputes be settled.

Solution :- In the absence of partnership deed, provisions of partnership act, 1932 are applied. As per the provisions of the act , disputed will be settled as follows
(a) No interest on capital will be allowed .
(b) No salary will be given to any partner.
(c) No interest on loan will be paid by partner.
(d) Profits will not be shared in the ratio of their capital contribution. Profits will be shared equally as per the provisions of the act.