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Bijan and sambhu are partners in a firm. Their assets and libilities as on 31st march, 2017 were : stock ¥ 5000 ; machinery ¥15000 ; debtors ¥ 4000 ; cash at bank ¥ 3500 ; cash in hand ¥ 500 ; creditors ¥ 3000 their capital accounts as on 1st april, 2016 were bijan ¥ 12000 and sambhu ¥ 7000. Bijan and sambhu drew during the year ¥ 2000 and ¥1000 respectively what will be the net profit for the year 2016-17 ? Calcuate also the share of profit of each partner
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Bijan and sambhu are partners in a firm. Their assets and libilities a...
Calculation of Net Profit for the Year 2016-17


  • Total Assets = ¥ 5000 + ¥ 15000 + ¥ 4000 + ¥ 3500 + ¥ 500 = ¥ 28300

  • Total Liabilities = ¥ 3000

  • Total Capital = ¥ 12000 + ¥ 7000 = ¥ 19000

  • Total Drawings = ¥ 2000 + ¥ 1000 = ¥ 3000

  • Working Capital = Total Assets - Total Liabilities = ¥ 25300

  • Adjusted Capital = Total Capital + Total Drawings = ¥ 22000

  • Net Profit = Working Capital - Adjusted Capital = ¥ 3300



Calculation of Share of Profit for Each Partner


  • Ratio of Capital: Bijan = ¥ 12000/¥ 19000 = 6/19; Sambhu = ¥ 7000/¥ 19000 = 13/38

  • Ratio of Drawings: Bijan = ¥ 2000/¥ 3000 = 2/3; Sambhu = ¥ 1000/¥ 3000 = 1/3

  • Bijan's Share of Profit = Net Profit x (6/19 - 2/3) = ¥ 600

  • Sambhu's Share of Profit = Net Profit x (13/38 - 1/3) = ¥ 2700/19



Explanation

Net Profit for the year 2016-17 is calculated by deducting the Adjusted Capital from the Working Capital. Working Capital is the excess of Total Assets over Total Liabilities, while Adjusted Capital is the sum of Total Capital and Total Drawings. The resulting Net Profit is then divided between the partners based on their respective ratios of Capital and Drawings.
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Bijan and sambhu are partners in a firm. Their assets and libilities as on 31st march, 2017 were : stock ¥ 5000 ; machinery ¥15000 ; debtors ¥ 4000 ; cash at bank ¥ 3500 ; cash in hand ¥ 500 ; creditors ¥ 3000 their capital accounts as on 1st april, 2016 were bijan ¥ 12000 and sambhu ¥ 7000. Bijan and sambhu drew during the year ¥ 2000 and ¥1000 respectively what will be the net profit for the year 2016-17 ? Calcuate also the share of profit of each partner
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Bijan and sambhu are partners in a firm. Their assets and libilities as on 31st march, 2017 were : stock ¥ 5000 ; machinery ¥15000 ; debtors ¥ 4000 ; cash at bank ¥ 3500 ; cash in hand ¥ 500 ; creditors ¥ 3000 their capital accounts as on 1st april, 2016 were bijan ¥ 12000 and sambhu ¥ 7000. Bijan and sambhu drew during the year ¥ 2000 and ¥1000 respectively what will be the net profit for the year 2016-17 ? Calcuate also the share of profit of each partner for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Bijan and sambhu are partners in a firm. Their assets and libilities as on 31st march, 2017 were : stock ¥ 5000 ; machinery ¥15000 ; debtors ¥ 4000 ; cash at bank ¥ 3500 ; cash in hand ¥ 500 ; creditors ¥ 3000 their capital accounts as on 1st april, 2016 were bijan ¥ 12000 and sambhu ¥ 7000. Bijan and sambhu drew during the year ¥ 2000 and ¥1000 respectively what will be the net profit for the year 2016-17 ? Calcuate also the share of profit of each partner covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bijan and sambhu are partners in a firm. Their assets and libilities as on 31st march, 2017 were : stock ¥ 5000 ; machinery ¥15000 ; debtors ¥ 4000 ; cash at bank ¥ 3500 ; cash in hand ¥ 500 ; creditors ¥ 3000 their capital accounts as on 1st april, 2016 were bijan ¥ 12000 and sambhu ¥ 7000. Bijan and sambhu drew during the year ¥ 2000 and ¥1000 respectively what will be the net profit for the year 2016-17 ? Calcuate also the share of profit of each partner.
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