Question

Tarun and Tej were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1^st April 2024, Tej had given a loan of ₹ 50,000 to the firm. The net profit of the firm before charging interest on the loan was ₹ 3,75,000. The firm closes its books on 31^st March every year. The amount of profit transferred from profit and loss account to profit and loss appropriation account will be ______.

विकल्प

• ₹ 3,75,000

• ₹ 3,72,000

• ₹ 4,25,000

• ₹ 3,78,000

Answer 1

Tarun and Tej were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1^st April 2024, Tej had given a loan of ₹ 50,000 to the firm. The net profit of the firm before charging interest on the loan was ₹ 3,75,000. The firm closes its books on 31^st March every year. The amount of profit transferred from the profit and loss account to the profit and loss appropriation account will be ₹ 3,72,000.

Explanation:

Given:

Net Profit (before interest) = ₹ 3,75,000

Tej’s Loan = ₹ 50,000

Period = 1st April 2024 to 31st March 2025 (Full year)

Interest on partner’s loan:

According to the indian partnership act, 1932, if the rate is not specified, interest is charged at 6% p.a.

Interest = `50,000 xx 6/100 xx 1`

= ₹ 3,000

Profit to be transferred to P & L appropriation A/c:

Profit Transferred = Net Profit − Interest on Loan

= 3,75,000 − 3,000

= 3,72,000