Question

anna and bobby were partners sharing profits and losses in the ratio of 5:3.on 1st april, 2014 their capital accounts showed balances of ₹3, 00,000 and ₹2, 00,000 respectively. calculate the amount of profit to be distributed between the partners if the partnership deed provided for interest on capital @10% per annum and the firm earned a profit of ₹45, 000for the year ended 31st march, 2015​

Answer 1

Explanation:

Solution :

Profit Rs 45,000 is not adequate to pay Interest on Capital which is Rs 50,000-Anna Rs 30,000 and Bobby Rs 20,000 Profit of Rs 45,000 will be credited to their respective Capital Accounts in the ratio of approprations to be made of Anna and Bobby, i.e., Rs 30,000: Rs 20,000 or

Thus, Anna will get Rs 27,000 and Bobby will get Rs 18,000.