Question

5. Naresh, Hitesh and Pavesh are partners sharing profits in the ratio of 3 : 2 : 1 after allowing interest on capitals @ 8% p.a. and salary of 80,000 p.a. to Hitesh. Net profit for the year ended 31st March, 2021 was 8,40,000 and balances in Capital Accounts were Naresh— 2,00,000; Hitesh—1,50,000 and Pavesh—1,20,000. Naresh expressed his desire that his son Harish be admitted as partner w.e.f. 1st January, 2021 for one-third of his share, which he will forgo in his favour. However, Pavesh objects to his proposal citing that as per the partnership a partner cannot be admitted unless all the other partners agree. Hitesh, however, has no objection to his admission. Naresh and Pavesh object to salary being allowed to Hitesh and demand that they also be paid equal salary as Hitesh as they were also handling the business. Discussion was held and thereafter, it was agreed that from the financial year, both, Naresh and Pavesh will be paid yearly salary of 60,000 each. As far as the current year is concerned, they will be paid Commission @ 5% of net profit each. Based on the above information, choose the correct answers to the questions. (i) Harish a b cannot be admitted as a partner because all the partners should agree to admitting a new partner, in the absence of a clause to this effect in the Partnership Deed. can be admitted as a partner because majority partners (Naresh and Hitesh) do not have objection to his admission. can become a partner since Naresh is forgoing his share of profit in favour of Harish. Remaining partners are not affected by the admission. can be admitted even if Hitesh and Pavesh both object to the admission of Harish, d (ii) Pavesh's share of residual profits for the year will be ( b) 3,77,200. a 1,06,400. 2,64,800. d) 2,98,000 (iii) Total amount of Appropriations credited to Hitesh for the year will be a 2,12,800. ( b) 2,24,800. 3,04,800. (d) 3,19,600. (iv) Commission payable to Naresh, Hitesh and Pavesh for the year will be 42,000, Nil, 42,000 respectively, b) Nil, Nil and Nil. 42,000; * 80,000; * 42,000 respectively. @ 42,000 to Naresh and Pavesh. a​

Answer 1

42,000

Explanation:

because

Naresh, Hitesh and Pavesh are partners sharing profits in the ratio of 3 : 2 : 1 after allowing interest on capitals @ 8% p.a. and salary of 80,000 p.a. to Hitesh. Net profit for the year ended 31st March, 2021 was 8,40,000 and balances in Capital Accounts were Naresh— 2,00,000; Hitesh—1,50,000 and Pavesh—1,20,000. Naresh expressed his desire that his son Harish be admitted as partner w.e.f. 1st January, 2021 for one-third of his share, which he will forgo in his favour. However, Pavesh objects to his proposal citing that as per the partnership a partner cannot be admitted unless all the other partners agree. Hitesh, however, has no objection to his admission