Question

Akhil and Bimal are partners sharing profits in the ratio of 3 : 2. Akhil gave loan to the firm of ` 1,00,000 on

1st October, 2019. On the same date, the firm gave loan to Bimal of ` 1,00,000. They do not have an

agreement as to interest.

Akhil had also given his personal property for firm’s godown at a monthly rent of ` 5,000.

Firm earns profit of ` 1,03,000 (before above adjustments) for the year ended 31st March, 2020. Show the

distribution of profit for the year.​

Answer 1

Answer: Akhil will get 22,200and bimal will get 14,800

Explanation: net profit= 1,03,000-60,000(rent)-6,000(interest on loan) i.e.,37,000Rs/-

Now, distribution of profits between partners:-

Akhil =37,000×3÷5 will be 22,200

Bimal= 37,000×2÷5 will be 14,800