Question

vasu and vayom are partners total interest on laon extended by a vasu to firm is 20000 firm has net profit of5000 the capital of vasu and vayom are in ratio 2:3 what will be vasu share of profit​

Answer 1

Answer:

Correct option is

A

Nil

In case of loss, two situations arise:

1. If partner's capital has a credit balance then his loan amount will be repaid. Following entry will be passed:

Partner's loan A/c Dr.

To Bank/Cash A/c

2. If a partner's capital has debit balance then loan amount will not be paid. loan amount is transferred to capital account of partner. Following entry will be passed:

Partner's loan A/c Dr.

To Partner's Capital A/c