CA Foundation Exam > CA Foundation Questions > A, B and C were Partners with capitals of 50,...
Start Learning for Free
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.?
Most Upvoted Answer
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
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
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.?
Question Description
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.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning 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.? defined & explained in the simplest way possible. Besides giving the explanation 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.?, 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.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup