Question

0.41. On 1st April, 2018 X, Y and Z started a business in partnership. X
contributes 390,000 at first but withdraws 30,000 at the end of six months. Y
introduces *75,000 at first and increases it to 390,000 at the end of four months, but
withdraws 30,000 at the end of eight months. Z brings in 375,000 at first but
increases it by 360,000 at the end of seven months.
During the year ended 31st March, 2019, they make a net profit of 42,000. Show
how the partners should divide this amount on the basis of effective capital employed
by each partner.
[Ans. Profit sharing ratio of X, Y and Z = 3:3 : 4.]​

Answer 1

Profit-sharing ratio should be 30:31:40

Explanation:

• Calculation of Total capital employed by X

       1.4.15   Capital Employed = $[Rs.90,000\times6 months]$

                                                  = Rs.5,40,000

      30.9.15  Capital Employed = $[Rs.60,000(90,000-30,000)\times 6 months]$

                                                   = Rs.3,60,000

Therefore,Total Capital Employed by X = $Rs.5,40,000+Rs.3,60,000$

                                                                  = Rs.9,00,000

• Calculation of Total Capital employed by Y

       1.4.15  Capital Employed = $[Rs.75000\times4 months]$

                                                = Rs.3,00,000

       31.7.15  Capital Employed = $[Rs.90,000(75000+15000)\times 5]$

                                                  = Rs.4,50,000

       31.12.15  Capital Employed = $[Rs.60,000(90,000-30,000)\times 3]$

                                                     = Rs.1,80,000

Therefore,Total Capital Employed by Y = $[3,00,000+4,50,000+1,80,000]$

                                                                  = Rs.9,30,000.

• Calculation of Total Capital Employed by Z

       1.4.15 Capital Employed = $75000\times 7$ =  Rs.525000

       31.10.15 Capital Employed = $135000\times5$ = Rs.675000

Therefore,Total Capital Employed by Z = $525000+625000$

                                                                  = Rs.12,00,000

Therefore,Opening Capital Ratio(OCR) of X,Y and Z should be

                         = 9,00,000:9,30,000:12,00,000

                         =  30 : 31 : 40

• Distribution of Profits among the partners

            X = $42000\times\dfrac{30}{101}$ = Rs.12475

            Y = $42000\times\dfrac{31}{101}$ = Rs.12891

            Z = $42000\times\dfrac{40}{101}$ = Rs.16634

Answer 2

$\huge\mathtt{\fbox{\red{Answer}}}$

Profit-sharing ratio should be 30:31:40

Explanation:

Calculation of Total capital employed by X

       1.4.15   Capital Employed = $[Rs.90,000\times6 months]$

                                                  = Rs.5,40,000

      30.9.15  Capital Employed = $[Rs.60,000(90,000-30,000)\times 6 months]$

                                                   = Rs.3,60,000

Therefore,Total Capital Employed by X = $Rs.5,40,000+Rs.3,60,000$

                                                                  = Rs.9,00,000

Calculation of Total Capital employed by Y

       1.4.15  Capital Employed = $[Rs.75000\times4 months]$

                                                = Rs.3,00,000

       31.7.15  Capital Employed = $[Rs.90,000(75000+15000)\times 5]$

                                                  = Rs.4,50,000

       31.12.15  Capital Employed = $[Rs.60,000(90,000-30,000)\times 3]$

                                                     = Rs.1,80,000

Therefore,Total Capital Employed by Y = $[3,00,000+4,50,000+1,80,000]$

                                                                  = Rs.9,30,000.

Calculation of Total Capital Employed by Z

       1.4.15 Capital Employed = $75000\times 7$ =  Rs.525000

       31.10.15 Capital Employed = $135000\times5$ = Rs.675000

Therefore,Total Capital Employed by Z = $525000+625000$

                                                                  = Rs.12,00,000

Therefore,Opening Capital Ratio(OCR) of X,Y and Z should be

                         = 9,00,000:9,30,000:12,00,000

                         =  30 : 31 : 40

Distribution of Profits among the partners

            X = $42000\times\dfrac{30}{101}$ = Rs.12475

            Y = $42000\times\dfrac{31}{101}$ = Rs.12891

            Z = $42000\times\dfrac{40}{101}$ = Rs.16634