Question

Simrat and Nimrat are partners from 1st April, 2019 without a Partnership Deed and they introduced
capitals of 1,00,000 and 80,000 respectively. On 1st October, 2019, Simrat also gave loan of ? 75,000
to the firm without any agreement as to interest. Nimrat allows the firm to carry on business from
premises owned by her for a yearly rent of 25,000. Profit as per the Profit and Loss Account for the
year ended 31st March, 2020 was 1,50,000 before charging interest on loan and rent. The partners
do not agree on allowing of interest and the basis of division of profits.
You are required to divide the profits giving reasons for your method.​

Answer 1

Answer:

Explanation:

                                       Profit And loss Account                                                    

To Rent                         25000                        By   Bal b/d              150000

To Interest on loan        2250

To Patners capital         122750

 Simrat   61375

 Nimrat    61375

                                                                                                                                 

                                     150000                                                      150000            

Working on notes

Interest on loan =   75000 * 6/12 * 6% = 2250

Patners capital divided equally = 122750 /2 = 61375