A and B are partners in a firm on 1st april 2017 their capital were rupees 20000and rupees 30000 respectively on 1st July 2017 A bought additional capital of Rupees 5000 and B 6000 on 1st october 2017 a withdrawn rupees 3000 and on 1st january 2018 B withdrew rupees 1500 interest is allowed at 8%per annum for year ended 31st march 2018 find out the interest payable to A and B
Answers
Answer:
As there is no partnership deed,some provisions of the Indian Partnership Act,1932 shall apply. Partners are not entitled to any interest on the capital contributed by them and cannot withdraw any salary for the work done by them for the business. They are eligible for interest on any loan advanced by them to the firm @ 6%p.a.
Profits should be shared equally irrespective of the amount of capital contributed.
Hence,the distribution of profits should be carried out in the following ways:-
Net profit as per profit& loss Account = 15,000
Less: interest on A's loan = 8,000*6%*6/12 = 240
profits remaining = 14,760
Share of profits
A = 7,380
B= 7,380
Explanation: