Question

A, B and C are partners in a firm. A and B are to get annual salary of ₹ 1,20,000 p.a. each as they are fully involved in the business. Net profit for the year is ₹ 4,80,000. Determine the share of profit to be credited to each partner.

Answer 1

zndbduduvdudvivieigeeieidbedd

Answer 2

Share of profit of each partner is given below:

Explanation:

There are three partners, A, B and C of the firm.  

Annual Salary of A and B are Rs, 1,20,000 each.

(1,20,000 + 1,20,000 = 2,40,000)

Firm’s net profit is Rs. 4,80,000

According to provisions pf Partnership Act, profit is to be equally distributed among the partners of the firm, if not specified in the agreement.

Profit that is to be shared equally among the three partners A, B and C:

$\frac {2,40,000}{3} = Rs. 80,000$

Therefore, Profit of Rs. 80000 for each partner.  

Thus, we see how each partner gets Rs. 80,000 as profit.