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P and q are partner this year profit in 2 ratio 1 ratio as per partnership they are to get interest on capital @ 10% per annum their capital we're P: 50000 and Q : 30,000 their profit before interest were 10100 interest in is allowed as charge what difference will it make a profit Rs 7100 only?
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P and q are partner this year profit in 2 ratio 1 ratio as per partner...
Partnership Profit and Interest Calculation

Given:

Partner P's capital = Rs. 50,000

Partner Q's capital = Rs. 30,000

Profit before interest = Rs. 10,100

Profit sharing ratio = 2:1

Interest on capital @ 10% per annum is allowed as a charge.

Profit after interest = Rs. 7,100


Calculation of Profit before Interest

Total capital = P's capital + Q's capital = 50,000 + 30,000 = Rs. 80,000

Let the profit be x.

According to partnership agreement, profit sharing ratio = 2:1

So, the profit will be divided as follows:

Partner P's share = 2/3 * x

Partner Q's share = 1/3 * x

2/3 * x / 50,000 = 1/3 * x / 30,000

Solving this equation, we get x = Rs. 10,100


Calculation of Interest on Capital

Interest on Partner P's capital = 10% of 50,000 = Rs. 5,000

Interest on Partner Q's capital = 10% of 30,000 = Rs. 3,000


Calculation of Profit after Interest

Total interest = Interest on P's capital + Interest on Q's capital = Rs. 5,000 + Rs. 3,000 = Rs. 8,000

Profit after interest = Profit before interest - Total interest

Profit after interest = Rs. 10,100 - Rs. 8,000 = Rs. 2,100


Impact of Profit after Interest of Rs. 7,100

If the profit after interest is Rs. 7,100, then:

Total interest = Profit before interest - Profit after interest

Total interest = Rs. 10,100 - Rs. 7,100 = Rs. 3,000


Conclusion

If the profit after interest is reduced from Rs. 2,100 to Rs. 7,100, then the total interest chargeable to the partners will increase from Rs. 8,000 to Rs. 3,000. This means that the partners will have to bear an additional interest cost of Rs. 5,000.
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P and q are partner this year profit in 2 ratio 1 ratio as per partnership they are to get interest on capital @ 10% per annum their capital we're P: 50000 and Q : 30,000 their profit before interest were 10100 interest in is allowed as charge what difference will it make a profit Rs 7100 only? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about P and q are partner this year profit in 2 ratio 1 ratio as per partnership they are to get interest on capital @ 10% per annum their capital we're P: 50000 and Q : 30,000 their profit before interest were 10100 interest in is allowed as charge what difference will it make a profit Rs 7100 only? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for P and q are partner this year profit in 2 ratio 1 ratio as per partnership they are to get interest on capital @ 10% per annum their capital we're P: 50000 and Q : 30,000 their profit before interest were 10100 interest in is allowed as charge what difference will it make a profit Rs 7100 only?.
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