Q8. A, B and C were Partners with capitals of 50,000;
240,000 and ? 30,000 respectively carrying on business
in partnership. The firm's reported profit for the year
was 280,000. As per provision of the Indian Partnership
Act, 1932, find out the share of each partner in the above
amount after taking into account that no interest has
been provided on an advance by A of 20,000 in addition
to his capital contribution.
(A) *26,267 for Partner B and C and 527,466 for Partner
A.
(B) *26,667 each partner.
(C) 33,333 for A 26,667 for B and 20,000 for C.
(D) 330,000 each partner.
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ACCOUNTANCY
A, B and C were capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respectively carrying on business in partnership. The firm's reported profit for the year was Rs. 79,200. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of Rs. 20,000, in addition to his capital contribution?
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ANSWER
Profit after charging interest = Profit before charging interest - Interest on loan
= RS-79,200 - 1,200
= RS-78,000.
Profit distribution among partners = RS-78,000/3
= RS-26,000.
Profit for B and C = RS-26,000
Profit for A = RS-26,000 + RS-1,200
= RS-27,200.
Note:-.
1) When there is no mention about the profit sharing ratio among partners its assumed to be equal.