Question

Mickey, Tom, and Jerry were partners in the ratio of 5 : 3 : 2. On 31st March 2021, their books reflected a net profit of ₹ 2,10,000. As per the terms of the partnership deed, they were entitled to interest on capital which amounted to ₹ 80,000, ₹ 60,000 and ₹ 40,000, respectively. Besides this, a salary of ₹ 60,000 each was payable to Mickey and Tom.

Calculate the ratio in which the profits would be appropriated.

विकल्प

• 1 : 1 : 1

• 5 : 3 : 2

• 7 : 6 : 2

• 4 : 3 : 2

Answer 1

7 : 6 : 2

Explanation:

Calculate the total appropriation for each partner:

Mickey: Interest on Capital + Salary

= ₹ 80,000 + ₹ 60,000

= ₹ 1,40,000

Tom: Interest on Capital + Salary

= ₹ 60,000 + ₹ 60,000

= ₹ 1,20,000

Jerry: Interest on Capital = ₹ 40,000

Total appropriations = 1,40,000 + 1,20,000 + 40,000

=  ₹ 3,00,000

Net Profit = ₹ 2,10,000

Since total appropriations (₹ 3,00,000) are more than the net profit (₹ 2,10,000), profit will be distributed in the ratio of their total appropriations.

Appropriation Ratio = ₹ 1,40,000 : ₹ 1,20,000 : ₹ 40,000

= 7 : 6 : 2