When there is no partnership deed, the provisions of the Indian Partnership Act, 1932 apply.
According to Section 13(d) of the Act, interest on a partner's loan to the firm is allowed at 6% per annum, regardless of what rate the partner claims.
Even though B claims 10% interest, only 6% p.a. will be allowed.
Calculation of Interest:
Loan Amount = Rs. 2,00,000
Period = 1st July 2023 to 31st March 2024 = 9 months
Rate = 6% p.a.
Using the formula: Interest = 100Principal×Rate×Time
Interest = 100×122,00,000×6×9
Interest = 1,2002,00,000×6×9
Interest = 1,20010,80,000
Interest = Rs. 9,000
The key point here is that in the absence of a partnership deed, the statutory rate of 6% p.a. applies to partner's loans, not the rate claimed by the partner. The time period of 9 months (from July to March) is also crucial for the calculation.