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A and B are partner in a firm sharing profits in the ratio of 3:2 . They had advanced to the firm ₹ 30000 as a loan in their profit sharing ratio on 1st october, 2018 the partnership deeb is silent on interest on loans from partners compute interest payable by the firm to the partners assuming the firm closes its books every year on 31st march?
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A and B are partner in a firm sharing profits in the ratio of 3:2 . Th...
Calculation of Interest Payable to Partners on Loan
Given data:
- A and B are partners in a firm sharing profits in the ratio of 3:2
- They had advanced to the firm ₹30,000 as a loan in their profit sharing ratio on 1st October 2018
- The partnership deed is silent on interest on loans from partners
- The firm closes its books every year on 31st March
To calculate the interest payable by the firm to the partners, we need to follow the below steps:
Step 1: Calculate the duration of the loan
- Loan given on 1st October 2018
- Firm closes its books every year on 31st March
- Therefore, the loan duration for the financial year 2018-19 is 6 months (1st October 2018 to 31st March 2019)
Step 2: Calculate the interest rate
- The partnership deed is silent on interest on loans from partners
- Therefore, we need to assume a reasonable interest rate based on prevailing market conditions and industry norms
- Let's assume an interest rate of 10% per annum
Step 3: Calculate the interest payable to each partner
- Interest payable to A = Loan amount (₹30,000) x Interest rate (10%) x Loan duration (6/12) x Profit sharing ratio (3/5) = ₹900
- Interest payable to B = Loan amount (₹30,000) x Interest rate (10%) x Loan duration (6/12) x Profit sharing ratio (2/5) = ₹600
Step 4: Record the interest payable in the books of the firm
- Interest payable to A = ₹900
- Interest payable to B = ₹600
- Total interest payable = ₹1,500
Conclusion:
- The firm should pay ₹900 interest to partner A and ₹600 interest to partner B on the loan amount of ₹30,000
- The total interest payable by the firm is ₹1,500
- This interest expense should be recorded in the books of accounts of the firm as an expense for the financial year 2018-19.
Given data:
- A and B are partners in a firm sharing profits in the ratio of 3:2
- They had advanced to the firm ₹30,000 as a loan in their profit sharing ratio on 1st October 2018
- The partnership deed is silent on interest on loans from partners
- The firm closes its books every year on 31st March
To calculate the interest payable by the firm to the partners, we need to follow the below steps:
Step 1: Calculate the duration of the loan
- Loan given on 1st October 2018
- Firm closes its books every year on 31st March
- Therefore, the loan duration for the financial year 2018-19 is 6 months (1st October 2018 to 31st March 2019)
Step 2: Calculate the interest rate
- The partnership deed is silent on interest on loans from partners
- Therefore, we need to assume a reasonable interest rate based on prevailing market conditions and industry norms
- Let's assume an interest rate of 10% per annum
Step 3: Calculate the interest payable to each partner
- Interest payable to A = Loan amount (₹30,000) x Interest rate (10%) x Loan duration (6/12) x Profit sharing ratio (3/5) = ₹900
- Interest payable to B = Loan amount (₹30,000) x Interest rate (10%) x Loan duration (6/12) x Profit sharing ratio (2/5) = ₹600
Step 4: Record the interest payable in the books of the firm
- Interest payable to A = ₹900
- Interest payable to B = ₹600
- Total interest payable = ₹1,500
Conclusion:
- The firm should pay ₹900 interest to partner A and ₹600 interest to partner B on the loan amount of ₹30,000
- The total interest payable by the firm is ₹1,500
- This interest expense should be recorded in the books of accounts of the firm as an expense for the financial year 2018-19.
Community Answer
A and B are partner in a firm sharing profits in the ratio of 3:2 . Th...
A-540,B-360
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A and B are partner in a firm sharing profits in the ratio of 3:2 . They had advanced to the firm ₹ 30000 as a loan in their profit sharing ratio on 1st october, 2018 the partnership deeb is silent on interest on loans from partners compute interest payable by the firm to the partners assuming the firm closes its books every year on 31st march?
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A and B are partner in a firm sharing profits in the ratio of 3:2 . They had advanced to the firm ₹ 30000 as a loan in their profit sharing ratio on 1st october, 2018 the partnership deeb is silent on interest on loans from partners compute interest payable by the firm to the partners assuming the firm closes its books every year on 31st march? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A and B are partner in a firm sharing profits in the ratio of 3:2 . They had advanced to the firm ₹ 30000 as a loan in their profit sharing ratio on 1st october, 2018 the partnership deeb is silent on interest on loans from partners compute interest payable by the firm to the partners assuming the firm closes its books every year on 31st march? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partner in a firm sharing profits in the ratio of 3:2 . They had advanced to the firm ₹ 30000 as a loan in their profit sharing ratio on 1st october, 2018 the partnership deeb is silent on interest on loans from partners compute interest payable by the firm to the partners assuming the firm closes its books every year on 31st march?.
A and B are partner in a firm sharing profits in the ratio of 3:2 . They had advanced to the firm ₹ 30000 as a loan in their profit sharing ratio on 1st october, 2018 the partnership deeb is silent on interest on loans from partners compute interest payable by the firm to the partners assuming the firm closes its books every year on 31st march? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A and B are partner in a firm sharing profits in the ratio of 3:2 . They had advanced to the firm ₹ 30000 as a loan in their profit sharing ratio on 1st october, 2018 the partnership deeb is silent on interest on loans from partners compute interest payable by the firm to the partners assuming the firm closes its books every year on 31st march? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partner in a firm sharing profits in the ratio of 3:2 . They had advanced to the firm ₹ 30000 as a loan in their profit sharing ratio on 1st october, 2018 the partnership deeb is silent on interest on loans from partners compute interest payable by the firm to the partners assuming the firm closes its books every year on 31st march?.
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A and B are partner in a firm sharing profits in the ratio of 3:2 . They had advanced to the firm ₹ 30000 as a loan in their profit sharing ratio on 1st october, 2018 the partnership deeb is silent on interest on loans from partners compute interest payable by the firm to the partners assuming the firm closes its books every year on 31st march?, a detailed solution for A and B are partner in a firm sharing profits in the ratio of 3:2 . They had advanced to the firm ₹ 30000 as a loan in their profit sharing ratio on 1st october, 2018 the partnership deeb is silent on interest on loans from partners compute interest payable by the firm to the partners assuming the firm closes its books every year on 31st march? has been provided alongside types of A and B are partner in a firm sharing profits in the ratio of 3:2 . They had advanced to the firm ₹ 30000 as a loan in their profit sharing ratio on 1st october, 2018 the partnership deeb is silent on interest on loans from partners compute interest payable by the firm to the partners assuming the firm closes its books every year on 31st march? theory, EduRev gives you an
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