Question

a b and c were partners with capitals 50000 40000 and ?30,000 respectively carrying on business in partnership the form reported profit for the year was 80,000 as per provision of the Indian partnership act 1932 find out the share of his partner in the above amount after taking it into account that no interest has been provided on an advanced by A of 20,000 in addition to his capital contribution​

Answer 1

Answer:

Correct option is

A

Rs. 26,000 for the partner B and C & Rs. 27,200 for partner A.

Profit after charging interest = Profit before charging interest - Interest on loan

= RS-79,200 - 1,200

= RS-78,000.

Profit distribution among partners = RS-78,000/3

= RS-26,000.

Profit for B and C = RS-26,000

Profit for A = RS-26,000 + RS-1,200

= RS-27,200.

Note:-.

1) When there is no mention about the profit sharing ratio among partners its assumed to be equal.

2) If there is no agreement or no provision regarding interest on loan in the agreement then the interest will be charged @ 6% p.a.