Q. 4 x, y , z are pautners in a firm. There was a dispute among partners Profit before 10 c was 6000 & I determined interest @ 24.1.p.a on his loan of F80000. There was no agreement on this point Calculats amount payable to x, , Y & z.
Answers
Correct question:
X, Y and Z are partners in a firm. At the time of division of profit for the year, there was a dispute among the partners. The profit before interest on partners' capital and loan was Rs 6,000 and Y determined interest @ 24% p.a. on his loan of Rs 80,000. There was no agreement on this point. Calculate the amount payable to X, Y and Z respectively.
Answer:
In the absence of the partnership deed, interest on loan is to be allowed at 6% p.a. and the profit/loss must be shared equally among the partners.
Therefore, interest on loan for Y will be:
Interest on loan = (Loan × Rate) ÷ 100
Interest on loan = (Rs 80,000 × 6) ÷ 100
Interest on loan = Rs 4,800
The profit after the charge of interest on loan = Rs 6,000 - Rs 4,800 = Rs 1,200
Calculation of profit shares:
As mentioned above, in the absence of the partnership deed, the profit must be shared equally.
For X:
- Profit share = Rs 1,200 × 1/3 = 400
For Y:
- Profit share = (Rs 1,200 × 1/3) + 4,800 = Rs 5,200
For Z:
- Profit share = (Rs 1,200 × 1/3) = Rs 400
Therefore, the amounts payable to X, Y and Z are Rs 400, Rs 5,200 and Rs 400 respectively.