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A, B and C were Partners with capitals of 50,000; 40,000 and * 30,000 respectively carrying on business in partnership. The firm's reported profit for the year was * 80,000. As per provision 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 were Partners with capitals of 50,000; 40,000 and * 30,000 ...
Partner's Share in Profit Calculation
Given details:
- Partner A's capital contribution: 50,000 + 20,000 (advance) = 70,000
- Partner B's capital contribution: 40,000
- Partner C's capital contribution: 30,000
- Firm's profit for the year: 80,000
Calculation of interest on Partner A's advance:
No interest has been provided on an advance by A of 20,000. As per the Indian Partnership Act, 1932, partners are entitled to receive interest on their advances at the rate of 6% per annum. Therefore, interest on Partner A's advance for the year would be:
Interest = 20,000 x 6% = 1,200
Partner's share in profit calculation:
The profit sharing ratio of the partners is determined by the agreement between them. However, in the absence of an agreement, the profit is shared equally among the partners. Assuming that the partners have an equal profit sharing ratio:
- Partner A's share = (70,000 + 1,200)/140,000 x 80,000 = 41,714.29
- Partner B's share = 40,000/140,000 x 80,000 = 22,857.14
- Partner C's share = 30,000/140,000 x 80,000 = 17,142.86
Explanation:
- The total capital contribution of the partners is 120,000 (70,000 + 40,000 + 30,000).
- Partner A's share in profit is higher than the other partners due to the interest earned on his advance.
- The interest on Partner A's advance is added to his capital contribution to determine his share in profit.
- The profit sharing ratio of the partners is assumed to be equal in the absence of an agreement.
- The shares of the partners are calculated based on their respective capital contributions and interest earned on advances.
Given details:
- Partner A's capital contribution: 50,000 + 20,000 (advance) = 70,000
- Partner B's capital contribution: 40,000
- Partner C's capital contribution: 30,000
- Firm's profit for the year: 80,000
Calculation of interest on Partner A's advance:
No interest has been provided on an advance by A of 20,000. As per the Indian Partnership Act, 1932, partners are entitled to receive interest on their advances at the rate of 6% per annum. Therefore, interest on Partner A's advance for the year would be:
Interest = 20,000 x 6% = 1,200
Partner's share in profit calculation:
The profit sharing ratio of the partners is determined by the agreement between them. However, in the absence of an agreement, the profit is shared equally among the partners. Assuming that the partners have an equal profit sharing ratio:
- Partner A's share = (70,000 + 1,200)/140,000 x 80,000 = 41,714.29
- Partner B's share = 40,000/140,000 x 80,000 = 22,857.14
- Partner C's share = 30,000/140,000 x 80,000 = 17,142.86
Explanation:
- The total capital contribution of the partners is 120,000 (70,000 + 40,000 + 30,000).
- Partner A's share in profit is higher than the other partners due to the interest earned on his advance.
- The interest on Partner A's advance is added to his capital contribution to determine his share in profit.
- The profit sharing ratio of the partners is assumed to be equal in the absence of an agreement.
- The shares of the partners are calculated based on their respective capital contributions and interest earned on advances.
Community Answer
A, B and C were Partners with capitals of 50,000; 40,000 and * 30,000 ...
Profit of A is 33333
profit of B is 26667
profit of c is 20000
profit of B is 26667
profit of c is 20000
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A, B and C were Partners with capitals of 50,000; 40,000 and * 30,000 respectively carrying on business in partnership. The firm's reported profit for the year was * 80,000. As per provision 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 were Partners with capitals of 50,000; 40,000 and * 30,000 respectively carrying on business in partnership. The firm's reported profit for the year was * 80,000. As per provision 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 were Partners with capitals of 50,000; 40,000 and * 30,000 respectively carrying on business in partnership. The firm's reported profit for the year was * 80,000. As per provision 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 were Partners with capitals of 50,000; 40,000 and * 30,000 respectively carrying on business in partnership. The firm's reported profit for the year was * 80,000. As per provision 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 were Partners with capitals of 50,000; 40,000 and * 30,000 respectively carrying on business in partnership. The firm's reported profit for the year was * 80,000. As per provision 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 were Partners with capitals of 50,000; 40,000 and * 30,000 respectively carrying on business in partnership. The firm's reported profit for the year was * 80,000. As per provision 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 were Partners with capitals of 50,000; 40,000 and * 30,000 respectively carrying on business in partnership. The firm's reported profit for the year was * 80,000. As per provision 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.?.
Solutions for A, B and C were Partners with capitals of 50,000; 40,000 and * 30,000 respectively carrying on business in partnership. The firm's reported profit for the year was * 80,000. As per provision 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.? in English & in Hindi are available as part of our courses for CA Foundation.
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A, B and C were Partners with capitals of 50,000; 40,000 and * 30,000 respectively carrying on business in partnership. The firm's reported profit for the year was * 80,000. As per provision 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 detailed solution for A, B and C were Partners with capitals of 50,000; 40,000 and * 30,000 respectively carrying on business in partnership. The firm's reported profit for the year was * 80,000. As per provision 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.? has been provided alongside types of A, B and C were Partners with capitals of 50,000; 40,000 and * 30,000 respectively carrying on business in partnership. The firm's reported profit for the year was * 80,000. As per provision 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.? theory, EduRev gives you an
ample number of questions to practice A, B and C were Partners with capitals of 50,000; 40,000 and * 30,000 respectively carrying on business in partnership. The firm's reported profit for the year was * 80,000. As per provision 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.? tests, examples and also practice CA Foundation tests.
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