Question

3. Simrat and Nimrat are partners from 1st April 2019 without a Partnership Deed and they introduced
capital of 1,00,000 and 80,000 respectively. On 1st October, 2019, Simrat also gave loan of 275,000
to the firm without any agreement as to interest. Nimrat allows the firm to carry on business from
premises owned by her for a yearly rent of 25.000. Profit as per the Profit and Loss Account for the
year ended 31st March, 2020 was 1.50,000 before charging interest on loan and rent. The partners
do not agree on allowing of interest and the basis of division of profits.
You are required to divide the profits giving reasons for your method.
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Answer 1

Answer:

here is your answer

Explanation:

A and B are partners from 1st April, 2017, without a Partnership Deed and they introduced capitals of Rs.35,000 and Rs.20,000 respectively. On 1st October, 2017, A advances a loan of Rs.8,000 to the firm without any agreement as to interest. The Profit and Loss Account for the year ended 31st March, 2018 shows a profit of Rs.15,000 but the partners cannot agree on payment of interest and on the basis of division of profits.

You are required to divide the profits between them giving reasons for your method.