Ramen, Soumen and Biman started a partnership business on 1st July, 2019. They contributed 5,00,000, 6,00,000 and 7,00,000 respectively as their capital. Interest on capital is to be provided @ 12% per annum. The firm earned a profit of 1,75,000 for the year ended 31st March, 2020. The profit-sharing ratio of partners is 1:2:2.
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Answer:
so the profit share between partners amount to 101667
Explanation:
as profit is less than interest on capital of partners so we have to provide interest on capital on new ratio this is 5:6:7 after calculating interest we have to calculate in ratio
working notes :- *interest on capital
ramen = 500000@12/100multiply 5/18 = 16667
soumen=600000@12/100multiply 6/18= 24000
biman = 700000@12/100multiply 7/18 =32667
*profit sharing ratio
interest on capital without multiply with new ratio we gave to take common out
ramen= 60000 =60 = 5
soumen= 72000 =72 = 6
biman= 84000 =84 = 7
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