Question

solve x and y are partners sharing the profits and losses in the ratio 2:1 with capitals of rs 50000 and rs 30000 respectively. show the distribution of profits in if the partnership deed provides for interest on capital @6 % p.a. and the profits for the year are rs 3000

Answer 1

IOC:

X: 6%@ 50000= 3000

Y: 6%@ 30000= 1800

but the distributable profit is 3000 only, so we have to divide the profit in the ratio of their intrest of capital.

New IOC:

X: 1875

Y: 1125