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X,y and z start busingess in partnership. X put in rs 20,000 for the whole year, y putvin rs30,000 at first abd increases it to rs40000 at the end of four month, but wirhdraws rs20000 at the end of sux months, whe z puts rs40,000 at first but withdraws rs10,000 atvthe end if nine months. At the end of the year how should they divide a profit of rs79,100 on the basis of effective capital employed by each partner?
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X,y and z start busingess in partnership. X put in rs 20,000 for the w...
Partnership Business Profit Division
Introduction
In a partnership business, profits are shared among the partners based on the capital invested by each partner. However, in some cases, partners may invest or withdraw capital during the year, and the profits need to be divided based on the effective capital employed by each partner.
Calculation of Effective Capital Employed
To calculate the effective capital employed by each partner, we need to consider the capital invested by each partner during the year, adjusted for any withdrawals or additions made during the year. The effective capital employed by each partner can be calculated using the following formula:
Effective Capital = (Capital invested for the whole year) + (Capital invested for part of the year x Number of months) - (Withdrawals during the year)
Calculation of Effective Capital Employed by Each Partner
Using the above formula, we can calculate the effective capital employed by each partner as follows:
- X: Effective Capital = Rs.20,000
- Y: Effective Capital = (Rs.30,000 x 4) + (Rs.40,000 x 8) - Rs.20,000 = Rs.3,00,000
- Z: Effective Capital = (Rs.40,000 x 9) - Rs.10,000 = Rs.3,50,000
Calculation of Profit Share for Each Partner
Once we have calculated the effective capital employed by each partner, we can divide the profits based on the proportion of effective capital employed by each partner. The profit share for each partner can be calculated using the following formula:
Profit Share = (Effective Capital Employed / Total Effective Capital Employed) x Total Profit
Using the above formula, we can calculate the profit share for each partner as follows:
- X: Profit Share = (Rs.20,000 / Rs.6,70,000) x Rs.79,100 = Rs. 2,357.31
- Y: Profit Share = (Rs.3,00,000 / Rs.6,70,000) x Rs.79,100 = Rs. 35,308.27
- Z: Profit Share = (Rs.3,50,000 / Rs.6,70,000) x Rs.79,100 = Rs. 41,434.42
Conclusion
In conclusion, the profits in a partnership business need to be divided based on the effective capital employed by each partner. In this case, X, Y, and Z invested different amounts of capital during the year and made withdrawals, which affected their effective capital employed. By calculating the effective capital employed by each partner, we can divide the profits in a fair and equitable manner.
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X,y and z start busingess in partnership. X put in rs 20,000 for the whole year, y putvin rs30,000 at first abd increases it to rs40000 at the end of four month, but wirhdraws rs20000 at the end of sux months, whe z puts rs40,000 at first but withdraws rs10,000 atvthe end if nine months. At the end of the year how should they divide a profit of rs79,100 on the basis of effective capital employed by each partner?
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X,y and z start busingess in partnership. X put in rs 20,000 for the whole year, y putvin rs30,000 at first abd increases it to rs40000 at the end of four month, but wirhdraws rs20000 at the end of sux months, whe z puts rs40,000 at first but withdraws rs10,000 atvthe end if nine months. At the end of the year how should they divide a profit of rs79,100 on the basis of effective capital employed by each partner? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about X,y and z start busingess in partnership. X put in rs 20,000 for the whole year, y putvin rs30,000 at first abd increases it to rs40000 at the end of four month, but wirhdraws rs20000 at the end of sux months, whe z puts rs40,000 at first but withdraws rs10,000 atvthe end if nine months. At the end of the year how should they divide a profit of rs79,100 on the basis of effective capital employed by each partner? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X,y and z start busingess in partnership. X put in rs 20,000 for the whole year, y putvin rs30,000 at first abd increases it to rs40000 at the end of four month, but wirhdraws rs20000 at the end of sux months, whe z puts rs40,000 at first but withdraws rs10,000 atvthe end if nine months. At the end of the year how should they divide a profit of rs79,100 on the basis of effective capital employed by each partner?.
X,y and z start busingess in partnership. X put in rs 20,000 for the whole year, y putvin rs30,000 at first abd increases it to rs40000 at the end of four month, but wirhdraws rs20000 at the end of sux months, whe z puts rs40,000 at first but withdraws rs10,000 atvthe end if nine months. At the end of the year how should they divide a profit of rs79,100 on the basis of effective capital employed by each partner? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about X,y and z start busingess in partnership. X put in rs 20,000 for the whole year, y putvin rs30,000 at first abd increases it to rs40000 at the end of four month, but wirhdraws rs20000 at the end of sux months, whe z puts rs40,000 at first but withdraws rs10,000 atvthe end if nine months. At the end of the year how should they divide a profit of rs79,100 on the basis of effective capital employed by each partner? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X,y and z start busingess in partnership. X put in rs 20,000 for the whole year, y putvin rs30,000 at first abd increases it to rs40000 at the end of four month, but wirhdraws rs20000 at the end of sux months, whe z puts rs40,000 at first but withdraws rs10,000 atvthe end if nine months. At the end of the year how should they divide a profit of rs79,100 on the basis of effective capital employed by each partner?.
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Here you can find the meaning of X,y and z start busingess in partnership. X put in rs 20,000 for the whole year, y putvin rs30,000 at first abd increases it to rs40000 at the end of four month, but wirhdraws rs20000 at the end of sux months, whe z puts rs40,000 at first but withdraws rs10,000 atvthe end if nine months. At the end of the year how should they divide a profit of rs79,100 on the basis of effective capital employed by each partner? defined & explained in the simplest way possible. Besides giving the explanation of
X,y and z start busingess in partnership. X put in rs 20,000 for the whole year, y putvin rs30,000 at first abd increases it to rs40000 at the end of four month, but wirhdraws rs20000 at the end of sux months, whe z puts rs40,000 at first but withdraws rs10,000 atvthe end if nine months. At the end of the year how should they divide a profit of rs79,100 on the basis of effective capital employed by each partner?, a detailed solution for X,y and z start busingess in partnership. X put in rs 20,000 for the whole year, y putvin rs30,000 at first abd increases it to rs40000 at the end of four month, but wirhdraws rs20000 at the end of sux months, whe z puts rs40,000 at first but withdraws rs10,000 atvthe end if nine months. At the end of the year how should they divide a profit of rs79,100 on the basis of effective capital employed by each partner? has been provided alongside types of X,y and z start busingess in partnership. X put in rs 20,000 for the whole year, y putvin rs30,000 at first abd increases it to rs40000 at the end of four month, but wirhdraws rs20000 at the end of sux months, whe z puts rs40,000 at first but withdraws rs10,000 atvthe end if nine months. At the end of the year how should they divide a profit of rs79,100 on the basis of effective capital employed by each partner? theory, EduRev gives you an
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