Read the following hypothetical text and answer the given
questions: Mahesh and Ramesh were partners in Hotel business sharing profit and losses in ratio 3:2. They sold food items across the counter and did home delivery too. Their initial fixed capital contribution was ₹1,00,000 and ₹75,000 respectively. At the end of first year their profit was ₹1,10,000 before allowing the remuneration of ₹2,000 per quarter to Mahesh and ₹3,000 per half year to Ramesh. Such a huge profit in the very first year and along with increase in the demand for home delivery, encouraged them to expand their business. They needed additional capital to meet the demand. Delivery van, few Scotties and an additional person was required to support. Six months later from the beginning of accounting year they decided to admit Usha into partnership and offered her /th share in profits along with monthly remuneration of ₹1,500. She was asked to introduce ₹1,20,000 for capital and ₹60,000 for goodwill. Besides this Usha was required to provide ₹80,000 as loan for two years. Usha readily accepted the offer. The terms of the offer were duly accepted and she was admitted as a partner
Answers
Answer:
This discussion on Read the following hypothetical text and answer the given questions:Amit and Mahesh were partners in a fast-food corner sharing profits and losses in ratio 3:2. They sold fast food items across the counter and did home delivery too. Their initial fixed capital contribution was ₹1,20,000 and ₹80,000 respectively. At the end of first year their profit was ₹1,20,000 before allowing the remuneration of ₹3,000 per quarter to Amit and ₹2,000 per half year to Ranju. Such a promising performance for the first year was encouraging, therefore, they decided to expand the area of operations.For this purpose, they needed a delivery van, a few Scotties and an additional person to support. Six months into the accounting year they decided to admit Sundram as a new partner and offered him 20% as a share of profits along with a monthly remuneration of ₹2,500. Sundram was asked to introduce ₹1,30,000 for capital and ₹70,000 as premium for goodwill. Besides this Sundram was required to provide ₹1,00,000 as loan for two years. Sundram readily accepted the offer. The terms of the offer were duly executed and he was admitted as a partner.Upon the admission of Sundram, the sacrifice for providing his share of profits would be done:a)by Amit onlyb)by Mahesh onlyc)by Amit and Mahesh equallyd)by Amit and Mahesh in the ratio of 3:2.Correct answer is option 'D'. Can you explain this answer? is done on EduRev Study Group by Commerce Students. The Questions and Answers of Read the following hypothetical text and answer the given questions:Amit and Mahesh were partners in a fast-food corner sharing profits and losses in ratio 3:2. They sold fast food items across the counter and did home delivery too. Their initial fixed capital contribution was ₹1,20,000 and ₹80,000 respectively. At the end of first year their profit was ₹1,20,000 before allowing the remuneration of ₹3,000 per quarter to Amit and ₹2,000 per half year to Ranju. Such a promising performance for the first year was encouraging, therefore, they decided to expand the area of operations.For this purpose, they needed a delivery van, a few Scotties and an additional person to support. Six months into the accounting year they decided to admit Sundram as a new partner and offered him 20% as a share of profits along with a monthly remuneration of ₹2,500. Sundram was asked to introduce ₹1,30,000 for capital and ₹70,000 as premium for goodwill. Besides this Sundram was required to provide ₹1,00,000 as loan for two years. Sundram readily accepted the offer. The terms of the offer were duly executed and he was admitted as a partner.Upon the admission of Sundram, the sacrifice for providing his share of profits would be done:a)by Amit onlyb)by Mahesh onlyc)by Amit and Mahesh equallyd)by Amit and Mahesh in the ratio of 3:2.Correct answer is option 'D'. Can you explain this answer? are solved by group of students and teacher of Commerce, which is also the largest student community of Commerce. If the answer is not available please wait for a while and a community member will probably answer this soon. You can study other questions, MCQs, videos and tests for Commerce on EduRev and even discuss your questions like Read the following hypothetical text and answer the given questions:Amit and Mahesh were partners in a fast-food corner sharing profits and losses in ratio 3:2. They sold fast food items across the counter and did home delivery too. Their initial fixed capital contribution was ₹1,20,000 and ₹80,000 respectively. At the end of first year their profit was ₹1,20,000 before allowing the remuneration of ₹3,000 per quarter to Amit and ₹2,000 per half year to Ranju. Such a promising performance for the first year was encouraging, therefore, they decided to expand the area of operations.For this purpose, they needed a delivery van, a few Scotties and an additional person to support. Six months into the accounting year they decided to admit Sundram as a new partner and offered him 20% as a share of profits along with a monthly remuneration of ₹2,500. Sundram was asked to introduce ₹1,30,000 for capital and ₹70,000 as premium for goodwill. Besides this Sundram was required to provide ₹1,00,000 as loan for two years. Sundram readily accepted the offer. The terms of the offer were duly executed and he was admitted as a partner.Upon the admission of Sundram, the sacrifice for providing his share of profits would be done:a)by Amit onlyb)by Mahesh onlyc)by Amit and Mahesh equallyd)by Amit and Mahesh in the ratio of 3:2.Correct answer is option 'D'. Can you explain this answer? over here on EduRev! Apart from being the largest Commerce community, EduRev has the largest solved Question bank for Commerce