Question

39. A and B are partners in a firm sharing profits and losses in the ratio of 3: 2. They have inves
capitals of 40,000 and 25,000 respectively. As per the partnership deed, they are entitled
interest on capital @ 5% p.a. before dividing the profits. During the year, the firm earned a pr
of 3,900 before allowing interest. The net profits will be apportioned as
(a) *260 to A and 390 to B
(b) * 390 to A and 260 to B
(C) 2,340 to A and * 1,560 to B
(d) * 1,560 to A and 2,340 to B
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Answer 1

Answer:

(C) 2,340 to A and * 1,560 to B