Question

xly 3:2 with capital 600000 and 300000
Show the distibution of profits in each
of the following cases
if the partnership deed provides for IOC @8%p.a even if it involves the firm in
loss and the profit for the year of 60000.​

Answer 1

Answer:

interest on X's capital = 6,00,000×8/100= 48,000

interest on Y's capital = 3,00,000×8/100= 24,000

total interest payable to partners = 48,000+24,000= 72,000

total profit available = 60,000

therefore loss of ₹12, 000 incurred because the interest on capital is here charge against profit given

distribute the loss of ₹12, 000 in 3:2

X's share of loss = 12,000×3/5 = 7200

Y's share of loss = 12,000×2/5 = 4800