Question

Bat and Ball are partners sharing the profits in the ratio of 2 : 3 with capitals of ₹ 1,20,000 and ₹ 60,000 respectively. On 1st October, 2017, Bat and Ball granted lonas of ₹ 2,40,000 and ₹ 1,20,000 respectively to the firm. Bat had allowed the firm to use his property for business for a monthly rent of ₹ 5,000. The loss for the year ended 31st March, 2018 before rent and interest amounted to ₹ 9,000. Show distribution of profit/loss.

Answer 1

Distribution of profit and loss is given below.

Explanation:

The ratio of profit sharing between the partners is given as 2:3.

Interest based on Bat and Ball’s loan :

Interest amount on Bat’s loan

$= 2,40,000 \times \frac {6}{100} \times \frac {6}{12}= Rs. 7,200$

Interest Amount on Ball’s loan

$= 1,20,000 \times \frac {6}{100} \times \frac {6}{12}= Rs. 3,600$

Yearly rent paid:

Monthly Rent = Rs. 5000

So yearly rent will be

$5,000 \times 12= 60,000$

Distribution of loss:

Loss that will be shared by the partners will be calculated as:

$9,000+7,200+3600+60,000=79,800$

Bat’s share of loss

$= 79,800 \times \frac {2}{5} = 31,920$

Ball’s share of loss

$= 79,800 \times \frac {3}{5} = 47,880$

Answer 2

Explanation:

DISTRIBUTION OF PROFIT AND LOSS IS GIVEN BELOW:

The ratio of profit sharing between the profit is given as 2:3

Intt based on bat and Ball's loan:

Intt amount on bat's loan

• 2,40,000 ×6/100 × 6/12 = rs. 7,200
• INTT AMNT ON BALL'S LOAN

=1,20,000 ×6/100 ×6/12 = RS. 3,600.

... monthly Rent = Rs. 5,000

... so, yearly Rent will be

... 5,000 ×12 =60,000 .

DISTRIBUTION OF LOSS:

loss that will be shared by the partners will be calculated as:

9,000 + 7,200 + 3,600 +60,000 = 79,800

Bat's share of loss

= 79,800 ×2/5 = 31,920

BALL'S share if loss

=79,800×3/5 = 47,880.