Question

A b c are partners sharing profits and losses in the ratio of 2 3 5. On 1st july 2018, A and B granted loans of 2 lakh and 1 lakh respectively to the firm.Show the distribution of profits/losses for the year ended 31s march,2019,in the following cases:
a) If the profits before interest for the year amounted to Rs. 7,500.
b) If the loss before interest for the year amounted to Rs. 7,500.​

Answer 1

Explanation:

part (a) loss = A- 1200, B- 1800, 3000

part (b) loss = A- 4200,B- 6300, C - 10500