Question

A and B are two partners contributing ₹50,000 and ₹40,000 respectively. They agreed that interest on capital at 5% p.a will be given to partners. B will be given 10% of the profit as remuneration for managing the business and balance of profit is to be divided in their capital ratio. If profit during the year is * 25,000, find the share of each. ​

Answer 1

so the each partner gets ₹9,225 .

and profit transfer formula - (dr-cr)×partner profit sharing ratio.

as the ratio is not given it is taken as 1:1