Question

Kanishk and Lalit are partners with fixed capitals of ₹ 5,00,000 and ₹ 10,00,000, respectively. The profit for the year ending 31st March 2025 was ₹ 3,30,000 before providing for any of the following adjustments: Kanishk is entitled to rent of ₹ 10,000 per month for using his property for business purposes. Lalit is entitled to a quarterly salary of ₹ 20,000. The manager is to be allowed a commission of 5% of net profit after charging his commission.

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

Kanishk’s share of profit will be ______.

Options

• ₹ 40,000

• ₹ 80,000

• ₹ 90,000

• ₹ 60,000

Answer 1

Kanishk’s share of profit will be ₹ 60,000.

Explanation:

	₹
Net Profit	2,00,000
Less: Salary to Lalit: ₹ 20,000 × 4	80,000
	1,20,000

Kanishk’s Share = `1/2 xx 1,20,000`

= ₹ 60,000