Question

A. B and C are partners sharing profits or losses in the ratio of 2:2: 1 respectively. The terms of
the partnership deed provide :
(a) 5% p.a. interest on capital & drawings.
(b) Salary to A @ 400 p.m.
(c) B to get bonus @ 5% on profit before considering the appropriation (a), (b) and (c).
(d) C to get 10% commission on profits after charging (c) and (d) but before charging (a) and (b).
On 1st April, 2015, A, B and C had capitals of 16,000. 12,000 and 8,000 respectively. A had
introduced 2,000 on 1st January, 2016. B had no drawings but A's drawings were 400 on
Ist October, 2015 and 600 on 31st January, 2016. C regularly withdraw 200 at the end of each
month.
The net profit for the year ended 31st March, 2016 amounted to 16,210. Distribute the profits
among the partners showing your calculations.
[Ans. Share of Profit: A2,978; B2,978 and C? 1.489)​

Answer 1

Answer:

Explanation:

A,B and C are partners sharing profits and losses in the ratio of 2:2:1 respectively. A is entitled to a commission of 10% on the net profit. Net profit for the year is Rs. 1,10,000.