Alka, Komal and Kamal are partners in a firm. Kamal uses Rs. 20 Lac of the firm, without any information to the other partners, to purchase a house ad he earns a profit of 5 lack on it. Which are being violated here? Also tell, what will happen to the profit earned by Kamal?
Answers
Answer:
Profit and Loss Appropriation Account
Particulars Amount Particulars Amount
To Interest on Capital
Kamal = 55,000
Kapil = 45,000 1,00,000 By Net Profit 6,00,000
To Partners Capital A/c
Kamal = 2,50,000
Kapil = 2,50,000 5,00,000
6,00,000 6,00,000
Calculation of Interest on Capital
Kamal:- Interest on 5,00,000 = 50,000
(5,00,000*10%)
Add: Interest on additional capital
(1,00,000*10%*1/2) = 5,000
Total Interest on Capital = 55,000
Kapil: Interest on 4,00,000 = 40,000
(4,00,000*10%)
Add:Interest on 1,00,000 from 1.4.2017
to 1/10/2017 = 5,000
Total interest on capital = 45,000
Total interest on capital = 45,000