Question

Mahesh and Ramesh are partners In a firm sharing profit in the ratio 5:3 there capital were rs3,00,000 and rs2,00,000 respectively. The partnership deed provided that. 1 interest on capital should be allowed @ 12% per annum. 2 a commission of 5% of net profit should be allowed to Ramesh. The net profit for the year was rs1,23,000

Answer 1

Explanation:

Mahesh 30000int on cap12%

300000*12%=36000

net profit 123000-6150 because 5%com to Ramesh

net profit 116850*5/8=73031.25

total 300000+36000+73031.25=409031.25

Ramesh 200000 int on cap 12%

200000*12%=24000

com 5%on net profit 123000*5%=6150

net profit 123000-73031.25=43818.75

total 200000+24000+6150+43818.75=273968.75is ans