Question

A and B are partners sharing profits in 3 : 2 with capitals of ₹ 6,00,000 and ₹ 4,00,000, respectively. They are entitled to interest on their capitals @ 10% p.a., and A is also entitled to a rent of ₹ 10,000 per month for use of his property by the firm. Net Profit earned by the firm for the year ended 31st March 2020 was ₹ 3,00,000. B’s share of profit will be ______.

Options

• ₹ 80,000

• ₹ 72,000

• ₹ 32,000

• ₹ 1,20,000

Answer 1

A and B are partners sharing profits in 3 : 2 with capitals of ₹ 6,00,000 and ₹ 4,00,000, respectively. They are entitled to interest on their capitals @ 10% p.a., and A is also entitled to a rent of ₹ 10,000 per month for use of his property by the firm. Net Profit earned by the firm for the year ended 31st March 2020 was ₹ 3,00,000. B’s share of profit will be ₹ 80,000.

Explanation:

Net Profit = 3,00,000

Interest on capitals = 1,00,000

Profit Available for Distribution = 3,00,000 − 1,00,000

= 2,00,000

B’s Share = `2,00,000 xx 2/5`

= ₹ 80,000