8. X and Y are partners sharing profits and losses in the ratio of 2:3 with capitals of 2,00,000 and
3,00,000 respectively.On 1st October, 2019,X and Y gave loans of 80,000 and 40,000 respectively to the
firm. Show distribution of profits/losses for the year ended 31st March, 2020 in each of the following
alternative cases:
Case 1. If the profits before interest for the year amounted to 21,000.
Case 2. If the profits before interest for the year amounted to 3,000.
Case 3. If the profits before interest for the year amounted to 5,000.
Case 4. If the loss before interest for the year amounted to 1.400.
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X and Y are partners sharing profits and losses in the ratio of 2:3 with capitals of Rs.2,00,000 and Rs.3,00,000 respectively. On 1st October, 2017, X and Y granted loans of Rs.80,000 and Rs.40,000 respectively to the firm. Show distribution of profits/losses for the ended 31st March, 2018 in each of the following alternative cases:
Case 1. If the profits before interest for the year amounted to Rs. 21,000.
Case 2. If the profits before interest for the year amounted to t Rs. 3,000.
Case 3. If the profits before interest for the year amounted to Rs. 5,00,0.
Case 4. If the loss before interest for the year amounted to Rs. 1,400.
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Assuming that there is existence of partnership deed among the partners.
Interest on capital and loan @ 6%p.a is to be paid. But as there is no enough profits,interest on capital cannot be provided for.
Case 1.
Net profit = 21,000
less:Interest on loan
X= 80,000*6%*1/2 = 2400
Y = 40,000*6%*1/2=1200 3,600
Share of profits 17,400
X = 6,960
Y= 10,440
Case 2.
Net profit = 3,000
Less:- interest on loan =( 3,600)
Loss =(600)
Interest on loan is to be provided even if there is loss.
Case 3.
Net profit = 5000
Less: Interest on loan = 3,600
Remaining profit = 1,400
Share of profit
X = 560
Y = 840
Case 4.
Net Loss = 1,400
Less:Interest on Loan = (3,600)
Loss = (5,000)