Question

A and B are partners with Capitals of ₹ 10,00,000 and ₹ 6,00,000 respectively. Interest on Capital is agreed @ 5% p.a. B is to be allowed a salary of ₹ 10,000 per month. During the year 2023–24, the profits prior to the calculation of interest on capital but after charging B's salary amounted to ₹ 3,00,000. Manager is to be allowed a commission of 5% of the profit after charging such commission.

Based on the above information you are required to answer the following question:

Share of Profit will be ______.

Options

• A ₹ 1,60,000 and B ₹ 1,60,000

• A ₹ 1,92,000 and B ₹ 1,28,000

• A ₹ 1,20,000 and B ₹ 80,000

• A ₹ 1,00,000 and B ₹ 1,00,000

Answer 1

Share of Profit will be A ₹ 1,00,000 and B ₹ 1,00,000.

Explanation:

Since the profit-sharing ratio is not given, the profit will be divided equally, i.e., 1,00,000 each.