Question

Charu and Dushyant are partners with Capitals of ₹ 14,00,000 and ₹ 6,00,000 respectively. During the year ended 31st March 2024, they earned a profit of ₹ 5,00,000 before any of the following adjustments: Interest on Capital is to be allowed @ 7% p.a. Charu granted a loan of ₹ 1,00,000 to the firm on 1st April, 2023. Out of this amount, ₹ 25,000 were returned to her on 31st July 2023. Dushyant is to get a quarterly rent of ₹ 45,000 for the use of his property by the firm. Interest on Drawings is to be charged at 8% p.a. Drawings of the partners were: Charu ₹ 1,00,000 and Dushyant ₹ 25,000.

Based on the above information you are required to answer the following question:

Share of Profit will be ______.

विकल्प

• Charu ₹ 92,500 and Dushyant ₹ 92,500

• Charu ₹ 90,000 and Dushyant ₹ 90,000

• Charu ₹ 1,26,000 and Dushyant ₹ 54,000

• Charu ₹ 1,29,500 and Dushyant ₹ 55,500

Answer 1

Share of Profit will be Charu ₹ 90,000 and Dushyant ₹ 90,000.

Explanation:

Interest on Capital (7% p.a.):

• Charu: ₹ 14,00,000 × 7% = ₹ 98,000
• Dushyant: ₹ 6,00,000 × 7% = ₹ 42,000
• Total IOC = ₹ 1,40,000

Interest on Drawings (8% p.a. for an average of 6 months):

• Charu: ₹ 1,00,000 × 8% × `6/12` = ₹ 4,000
• Dushyant: ₹ 25,000 × 8% × `6/12` = ₹ 1,000
• Total IOD = ₹ 5,000

Divisible Profit = 3,15,000 + 5,000 − 1,40,000 = 1,80,000

Since no profit-sharing ratio is mentioned, profits are shared equally (1 : 1).