Question

X and Y are partners with capitals of ₹ 4,00,000 and ₹ 2,00,000, respectively, on 1st April, 2023, and their profit sharing ratio is 3 : 2. Interest on capital is agreed @ 5% p.a. Y is to be allowed a salary of ₹ 5,000 p.m. The profit for the year ended 31st March, 2024, amounted to ₹ 1,54,000. The manager is entitled to a commission of 10% of the profits after charging such commission. Y’s share of profit will be ______.

विकल्प

• ₹ 30,000

• ₹ 20,000

• ₹ 19,440

• ₹ 29,160

Answer 1

X and Y are partners with capitals of ₹ 4,00,000 and ₹ 2,00,000, respectively, on 1st April, 2023, and their profit sharing ratio is 3 : 2. Interest on capital is agreed @ 5% p.a. Y is to be allowed a salary of ₹ 5,000 p.m. The profit for the year ended 31st March, 2024, amounted to ₹ 1,54,000. The manager is entitled to a commission of 10% of the profits after charging such commission. Y’s share of profit will be ₹ 20,000.

Explanation:

Commission = `"Profit before commission" xx "Rate"/(100 + "Rate")`

Manager’s Commission = `1,54,000 xx 10/(100 + 10)`

= `1,54,000 xx 10/110`

= 14,000

Calculate Interest on Capital:

X = `4,00,000 xx 5/100`

= 20,000

Y = `2,00,000 xx 5/100`

= 10,000

Total Interest on Capital = 20,000 + 10,000

= 30,000

Y’s Salary = 5,000 × 12

= 60,000

Distributable Profit = 1,54,000 − 14,000 − 30,000 − 60,000

= 50,000

Y’s Share of Profit = `50,000 xx 2/5`

= 20,000