Question

20.A and B contribute ₹1,00,000 and ?₹60,000 respectively in a partnership firm by way of

capital on which they agree to allow interest @ 8% p.a. Their profit or loss sharing ratio is 3 :

2. The profit at the end of the year was ₹2,800 before allowing interest on capital. If there is

a clear agreement that interest on capital will be paid even in case of loss, then S’s share will

be:

(A) Profit ₹6,000

(B) Profit ₹4,000

(C) Loss ₹6,000

(D) Loss ₹4,000​

Answer 1

Answer:

(D)Loss ₹4000

Explanation:

IOC on A capital=100000*8/100=8000

Ioc on b capital=60000*8/100=4800

TOTAL IOC=12800

ACTUAL PROFIT=2800

LOSS=12800-2800=10000

Divide loss into 3:2 (given)

A loss =10000*3/5=6000

B loss=10000*2/5=4000