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Question
A, B and C are in partnership business. A used ₹ 2,00,000 belonging to the firm without the information to other partners and made a profit of ₹ 35,000 by using this amount. Which decision should be taken by the firm to rectify this situation?
Options
A need to return only ₹ 2,00,000 to the firm.
A is required to return ₹ 35,000 to the firm.
A is required to pay back ₹ 35,000 only equally to B and C.
A need to return ₹ 2,35,000 to the firm.
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Solution
A need to return ₹ 2,35,000 to the firm.
Explanation:
A is required to return both the principal amount of ₹ 2,00,000 and the profit of ₹ 35,000 earned through the use of the firm’s money. This ensures the firm is fully compensated for both the amount and the profit generated from it. Therefore, A needs to return ₹ 2,00,000 (the amount used) + ₹ 35,000 (the profit earned), totalling ₹ 2,35,000.
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| Balance Sheet as on 31st March, 2023 | |||||
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
| Capital: | Furniture | 19,600 | |||
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| Sundry Creditors | 49,000 | Sundry Debtors | 67,200 | ||
| Bank Loan | 21 ,000 | Less: R.D.D. | 4,200 | 63,000 | |
| Stock | 42,000 | ||||
| Cash in Hand | 14,000 | ||||
| Advertisement Suspense | 11,200 | ||||
| 2,52,000 | 2,52,000 | ||||
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(2) Debtors realised 90% of the book value and Trademark at ₹ 7,000 and Goodwill was realised for ₹ 37,800.
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You are required to prepare Realisation A/c, Cash A/c and Partner's Capital A/cs.
Read the following hypothetical situation and answer question on the basis of the same.
|
Nitya, Shreya and Ishita are partners in a firm. They share profit in the ratio of 5 : 3 : 2. Their fixed capital are ₹1,80,000; ₹1,60,000 and ₹2,00,000 respectively. For the year ending 31st March, 2022, Nitya withdrew ₹7,500 at the end of every quarter. |
The partnership deed provide that interest on capital will be allowed @10% p.a. The amount of interest on Ishita's capital will be:
| Nitya, Shreya and Ishita are partners in a firm. They share profits in the ratio of 5 : 3 : 2. Their fixed capitals are ₹ 1,80,000; ₹ 1,60,000 and ₹ 2,00,000 respectively. For the year ending 31st March, 2022, Nitya withdrew ₹ 7,500 at the end of every quarter. |
The average number of months for which interest on drawings will be calculated, will be:
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