Question

A, B and C were Partners with capitals of Rs.50,000, Rs.40,000 and Rs.30,000 respectively carrying on business in partnership. The firm's reported profit for the year was Rs.80,000. As per provision of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of Rs.20,000 in addition to his capital contribution.

Answer 1

"  7 : 4 : 3 "

Explanation:

Capitals of,

      A = 50000

      B = 40000

      C = 30000,   therefore 5 : 4 : 3 is the Old Ratio

Profit of Firm : 80000

A has contributed additional capital of Rs 20000

 A = 50000 + 20000 = 70000

So,  ratios of partners will be 7 : 4 : 3