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X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.
- a)Profits of Rs. 6,000 will be distributed equally.
- b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.
- c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.
- d)None of the above
Correct answer is option 'A'. Can you explain this answer?
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X, Y and Z are partners in a firm. At the time of division of profit f...
Division of Profit between Partners
The problem presents a scenario where three partners X, Y, and Z are in a partnership firm. At the time of division of profit for the year, there was a dispute between the partners. The profits before interest on partners' capital stood at Rs. 6,000. X wanted interest on capital at 20% due to his higher capital contribution.
Options:
a) Profits of Rs. 6,000 will be distributed equally.
b) X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.
c) All the partners will get interest on capital, and the loss of Rs. 39,000 will be shared equally.
d) None of the above
Correct answer: option 'A'
Explanation:
Equal Distribution of Profit
As per the partnership agreement, profits are to be divided among the partners in a pre-decided ratio. In this case, there is no information provided regarding the profit-sharing ratio. Therefore, it can be assumed that the partners have an equal share in the profits.
Interest on Capital
X has a higher capital contribution as compared to Y and Z. However, there is no clause in the partnership agreement that allows for different interest rates on capital contributions. Therefore, X cannot demand a higher interest rate on his capital contribution.
Loss Sharing
The problem does not provide any information about the losses incurred by the firm. Therefore, no conclusion can be drawn regarding the sharing of losses.
Conclusion
Based on the above analysis, option 'A' is the correct answer. The profits of Rs. 6,000 will be distributed equally among the partners.
The problem presents a scenario where three partners X, Y, and Z are in a partnership firm. At the time of division of profit for the year, there was a dispute between the partners. The profits before interest on partners' capital stood at Rs. 6,000. X wanted interest on capital at 20% due to his higher capital contribution.
Options:
a) Profits of Rs. 6,000 will be distributed equally.
b) X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.
c) All the partners will get interest on capital, and the loss of Rs. 39,000 will be shared equally.
d) None of the above
Correct answer: option 'A'
Explanation:
Equal Distribution of Profit
As per the partnership agreement, profits are to be divided among the partners in a pre-decided ratio. In this case, there is no information provided regarding the profit-sharing ratio. Therefore, it can be assumed that the partners have an equal share in the profits.
Interest on Capital
X has a higher capital contribution as compared to Y and Z. However, there is no clause in the partnership agreement that allows for different interest rates on capital contributions. Therefore, X cannot demand a higher interest rate on his capital contribution.
Loss Sharing
The problem does not provide any information about the losses incurred by the firm. Therefore, no conclusion can be drawn regarding the sharing of losses.
Conclusion
Based on the above analysis, option 'A' is the correct answer. The profits of Rs. 6,000 will be distributed equally among the partners.
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X, Y and Z are partners in a firm. At the time of division of profit f...
Because may be parners cannot get interest on capital if it is not mentioned in the agreement
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X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profits of Rs. 6,000 will be distributed equally.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the aboveCorrect answer is option 'A'. Can you explain this answer?
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X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profits of Rs. 6,000 will be distributed equally.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the aboveCorrect answer is option 'A'. Can you explain this answer? 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 X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profits of Rs. 6,000 will be distributed equally.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the aboveCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profits of Rs. 6,000 will be distributed equally.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the aboveCorrect answer is option 'A'. Can you explain this answer?.
X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profits of Rs. 6,000 will be distributed equally.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the aboveCorrect answer is option 'A'. Can you explain this answer? 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 X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profits of Rs. 6,000 will be distributed equally.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the aboveCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profits of Rs. 6,000 will be distributed equally.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the aboveCorrect answer is option 'A'. Can you explain this answer?.
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X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profits of Rs. 6,000 will be distributed equally.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the aboveCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profits of Rs. 6,000 will be distributed equally.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the aboveCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profits of Rs. 6,000 will be distributed equally.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the aboveCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profits of Rs. 6,000 will be distributed equally.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the aboveCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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