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Question
A and B are partners sharing profit in the ratio 3 : 2. On 31st March 2024, the firm’s net profit is ₹ 2,40,000. The partnership deed provided interest on capital to A and B ₹ 20,000 and ₹ 10,000, respectively, and interest on drawings for the year amounted to ₹ 7,000 from A and ₹ 3,000 from B. A is also entitled to commission @ 10% on net divisible profits. Calculate profit to be transferred to B’s Capital A/c.
Options
₹ 2,00,000
₹ 1,20,000
₹ 80,000
₹ 79,200
MCQ
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Solution
₹ 80,000
Explanation:
| Particulars | Amount (₹) |
| Net Profit | 2,40,000 |
| Less: Interest on Capital (20,000 + 10,000) | 30,000 |
| 2,10,000 | |
| Add: Interest on Drawings (7,000 + 3,000) | 10,000 |
| 2,20,000 | |
| Less: 10% Commission on net divisible profit = `2,20,000 xx 10/110` | 20,000 |
| Net divisible profit | 2,00,000 |
B’s share of profit = `2,00,000 xx 2/5`
= ₹ 80,000
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