Question

A b c head capitals of rs 50,000 rs 40,000 and rs 30,000 for carrying on business in partnership the firm's reported profit for the year was rs 80000 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 advance by a of rs 20,000 in addition to his capital contribution

Answer 1

As per the provisions of the Indian Partnership Act of 1932, interest @ 6% p.a. is provided to the partners for any amount advanced by them to the firm by way of loan. Here, A will be entitled to receive interest of Rs 1,200 (20,000 @ 6%). Thereafter, the remaining profits (80,000−1,200) will be shared equally among A, B and C.

So, ​A will get Rs 27,466 (his share of profit + interest on loan i.e. Rs 26,266 + 1,200)
B & C will get Rs 26267 each.

Answer 2

Step-by-step explanation:

As per Indian Partnership Act 1932 interest on A's loan to the firm is :-20,000x6/100=1,200.

Total profit of the firm is :-80,000-1,200=78,800.

As per Indian Partnership Act 1932 the profits of the firm will be shared euqally among the partners.

So,

A's share of profit=78,800x1/3=26,266+1,200=27,466

B's share of profit=78,800x1/3=26,266

C's share of profit=78,800x1/3=26,266