Question

X, Y, and Z are partners in a firm. At the time of division of profit for the year, there was dispute between
the partners. Profit before interest on partner’s capital was ₹6,00,000 and Z demanded minimum profit
of ₹5,00,000 as his financial position was not good. However, there was no written agreement on this
point. Calculate the distributable profit: (1)
(A) Other partners will pay Z the minimum profit and will share the loss equally.
(B) Other partners will pay Z the minimum profit and will share the loss in capital ratio.
(C) X and Y will take ₹50,000 each and Z will take ₹5,00,000.
(D) ₹2,00,000 to each of the partners.

Answer 1

Explanation:

ans is D because there was not written agreement so profit will be share equally