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okay so partnership is a voluntary association between two to twenty uh people to form a business so they share the responsibilities and the profits equally but some of the partners they would share a profit ing to a great proportions okay so when we talk about interest and capital we are referring to the interest that a partner is entitled to from their investment so how will be the calculations if a partner decided to increase their capital interest will be calculated from the initial amount of capital first and then number two interest will also be calculated on the increment amount from the day an increase was made until the financial year end okay so it means now you have two types of capital if the partner decides to increase their capital the first one will be the initial capital the old capital and then the second one will be the additional capital say for example you have invested hundred thousand uh in 2020 on the 1st of january and then you decide to increase your investment
