Q 3. A, B and C are partners in a firm. They do not have a Partnership Deed. At the end of the first year of the commencement of the firm, they have faced the following problems :

a A wants that interest on capital should be allowed to the partners but B and C do not agree.

b B wants that the partners should be allowed to draw salary but A and C do not agree.

c C wants that the loan given by him to the firm should bear interest @ 10% p.a. but A and B do not agree.

d A and B having contributed larger amounts of capital, desire that the profits should be divided in the ratio of their capital contribution but C does not agree. State how you will settle these disputes if the partners approach you for purpose.