Question

On 1st January 2024, Ravi, Mohan and Shreya entered into a partnership with fixed capitals of ₹ 3,00,000, ₹ 2,00,000 and ₹ 1,00,000, respectively. Their partnership deed provided for the following: Salary to Ravi @ ₹ 20,000 per month. Rent to Mohan for the use of his property for business purpose @ ₹ 5,000 per month. The manager is to be allowed a commission of 10% of the profit of the firm. Profit for the year ended 31st March, 2024, before providing for the above adjustments, amounted to ₹ 3,45,000.

Shreya’s share of profit will be:

Options

• ₹ 79,000

• ₹ 80,000

• ₹ 39,500

• ₹ 40,000

Answer 1

₹ 79,000

Explanation:

Particulars	₹
Profit before adjustments	3,45,000
Less: Rent @ ₹ 5,000 per month (for 3 months)	15,000
	3,30,000
Less: Manager’s Commission: 10% of ₹ 3,30,000	33,000
Net Profit	2,97,000
Less: Salary to Ravi @ ₹ 20,000 per month for 3 months	60,000
	2,37,000

Shreya’s share of profit = `(2,37,000)/3`

= ₹ 79,000