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A,B and C had capitals of 50000,,40000 and 30000 for carrying on business in partnership. The firm's reported profit for the year was 80000.as per provisions of the Indian partnership act,1932,find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of 20,000 in addition to his capital contribution.?
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A,B and C had capitals of 50000,,40000 and 30000 for carrying on busin...
As per the provisions of the Indian Partnership Act of 1932, interest @ 6% p.a. is provided to the partners for any amount advanced by them to the firm by way of loan. Here, A will be entitled to receive interest of Rs 1,200 (20,000 @ 6%). Thereafter, the remaining profits (80,000−1,200) will be shared equally among A, B and C
So, A will get Rs 27,466 (his share of profit + interest on loan i.e. Rs 26,266 + 1,200)
B & C will get Rs 26267 each.
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A,B and C had capitals of 50000,,40000 and 30000 for carrying on busin...
Calculation of Share of Each Partner:
To determine the share of each partner in the profit, we need to consider their respective capital contributions and any additional advances made by them.
Capital Contributions:
- A's capital: 50,000
- B's capital: 40,000
- C's capital: 30,000
Additional Advance by A:
- A has made an additional advance of 20,000.
Total Capital:
To calculate the total capital, we sum up the capital contributions of all partners along with any additional advances:
Total capital = A's capital + B's capital + C's capital + Additional advance by A
Total capital = 50,000 + 40,000 + 30,000 + 20,000
Total capital = 1,40,000
Profit Sharing Ratio:
The profit sharing ratio is determined based on the partners' capital contributions and any additional advances made. In this case, since no interest has been provided on A's additional advance, it is treated as part of his capital contribution.
- A's share = (A's capital + Additional advance by A) / Total capital
- B's share = B's capital / Total capital
- C's share = C's capital / Total capital
Calculation:
A's share = (50,000 + 20,000) / 1,40,000
A's share = 70,000 / 1,40,000
A's share = 1/2 or 0.5 (50%)
B's share = 40,000 / 1,40,000
B's share = 2/7 or approximately 0.2857 (28.57%)
C's share = 30,000 / 1,40,000
C's share = 3/14 or approximately 0.2143 (21.43%)
Share of Each Partner:
- A's share = 50% of the profit (40,000)
- B's share = 28.57% of the profit (22,856)
- C's share = 21.43% of the profit (17,144)
Therefore, A's share in the profit is 40,000, B's share is 22,856, and C's share is 17,144.
To determine the share of each partner in the profit, we need to consider their respective capital contributions and any additional advances made by them.
Capital Contributions:
- A's capital: 50,000
- B's capital: 40,000
- C's capital: 30,000
Additional Advance by A:
- A has made an additional advance of 20,000.
Total Capital:
To calculate the total capital, we sum up the capital contributions of all partners along with any additional advances:
Total capital = A's capital + B's capital + C's capital + Additional advance by A
Total capital = 50,000 + 40,000 + 30,000 + 20,000
Total capital = 1,40,000
Profit Sharing Ratio:
The profit sharing ratio is determined based on the partners' capital contributions and any additional advances made. In this case, since no interest has been provided on A's additional advance, it is treated as part of his capital contribution.
- A's share = (A's capital + Additional advance by A) / Total capital
- B's share = B's capital / Total capital
- C's share = C's capital / Total capital
Calculation:
A's share = (50,000 + 20,000) / 1,40,000
A's share = 70,000 / 1,40,000
A's share = 1/2 or 0.5 (50%)
B's share = 40,000 / 1,40,000
B's share = 2/7 or approximately 0.2857 (28.57%)
C's share = 30,000 / 1,40,000
C's share = 3/14 or approximately 0.2143 (21.43%)
Share of Each Partner:
- A's share = 50% of the profit (40,000)
- B's share = 28.57% of the profit (22,856)
- C's share = 21.43% of the profit (17,144)
Therefore, A's share in the profit is 40,000, B's share is 22,856, and C's share is 17,144.
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A,B and C had capitals of 50000,,40000 and 30000 for carrying on business in partnership. The firm's reported profit for the year was 80000.as per provisions of the Indian partnership act,1932,find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of 20,000 in addition to his capital contribution.?
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A,B and C had capitals of 50000,,40000 and 30000 for carrying on business in partnership. The firm's reported profit for the year was 80000.as per provisions of the Indian partnership act,1932,find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of 20,000 in addition to his capital contribution.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A,B and C had capitals of 50000,,40000 and 30000 for carrying on business in partnership. The firm's reported profit for the year was 80000.as per provisions of the Indian partnership act,1932,find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of 20,000 in addition to his capital contribution.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A,B and C had capitals of 50000,,40000 and 30000 for carrying on business in partnership. The firm's reported profit for the year was 80000.as per provisions of the Indian partnership act,1932,find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of 20,000 in addition to his capital contribution.?.
A,B and C had capitals of 50000,,40000 and 30000 for carrying on business in partnership. The firm's reported profit for the year was 80000.as per provisions of the Indian partnership act,1932,find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of 20,000 in addition to his capital contribution.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A,B and C had capitals of 50000,,40000 and 30000 for carrying on business in partnership. The firm's reported profit for the year was 80000.as per provisions of the Indian partnership act,1932,find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of 20,000 in addition to his capital contribution.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A,B and C had capitals of 50000,,40000 and 30000 for carrying on business in partnership. The firm's reported profit for the year was 80000.as per provisions of the Indian partnership act,1932,find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of 20,000 in addition to his capital contribution.?.
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