A firm of partner ,X Y and Z has fixed capital of rupees 60000,rupees 50000 and rupees 40000 respectively.Interest on capital is allowed 8% p.a. The profits of last four years before interest on capital were: ist year rs. 40000; 2nd year 30000;3rd year rs. 60000;4th year rs. 50000. partners have been allowed salary of rs. 70000 in total during the above four years. As per agreement goodwill of the firm is to be valued at 2.5 years of the average net profits of the last four years
Answers
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.
Answer:
40,00,000 this is the answer