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A,B,C were partners with capitals of 5O,OOO ;4O, OOO;3O,OOO respectively carrying on business in partnership. The firm's reported profit for the yr was 8O,OOO. As per the provision of Indian Partnership Act1932, find out the share of each partner in above amt. After taking into account that no interest has been provided in an advance by A of 2O,OOO in addition to his capital contribution.?
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A,B,C were partners with capitals of 5O,OOO ;4O, OOO;3O,OOO respective...
Calculation of Share of Each Partner in Profit
Given Data:
Partner A's capital contribution = Rs. 50,000
Partner B's capital contribution = Rs. 40,000
Partner C's capital contribution = Rs. 30,000
Total capital contribution = Rs. 1,20,000
Profit earned = Rs. 80,000
To find the share of each partner in the profit, we need to calculate their profit sharing ratio. The profit sharing ratio is calculated based on the capital contribution of each partner.
Partner A's profit sharing ratio = (50,000 + 20,000) / 1,20,000 = 0.5833
Partner B's profit sharing ratio = 40,000 / 1,20,000 = 0.3333
Partner C's profit sharing ratio = 30,000 / 1,20,000 = 0.2500
Now, we can calculate the share of each partner in the profit:
Partner A's share in profit = 80,000 x 0.5833 = Rs. 46,664.40
Partner B's share in profit = 80,000 x 0.3333 = Rs. 26,664.00
Partner C's share in profit = 80,000 x 0.2500 = Rs. 20,000.00
Explanation
As per the Indian Partnership Act 1932, the profit sharing ratio of partners is determined based on their capital contribution. In this case, Partner A has contributed Rs. 50,000, and he has also provided an additional advance of Rs. 20,000. Therefore, his effective capital contribution is Rs. 70,000. Partner B has contributed Rs. 40,000, and Partner C has contributed Rs. 30,000. The total capital contribution is Rs. 1,20,000.
The profit earned by the firm during the year is Rs. 80,000. To determine the share of each partner in the profit, we need to calculate their profit sharing ratio. The profit sharing ratio is calculated based on the capital contribution of each partner. Partner A's profit sharing ratio is calculated by adding his capital contribution and advance and dividing it by the total capital contribution. Partner B and Partner C's profit sharing ratio is calculated by dividing their capital contribution by the total capital contribution.
After calculating the profit sharing ratio of each partner, we can determine their share in profit by multiplying the profit earned by the firm with their profit sharing ratio. Partner A's share in profit is higher than the other partners because he has contributed more capital to the firm. However, it should be noted that Partner A has also provided an additional advance of Rs. 20,000, which has not been considered while calculating the profit sharing ratio. Therefore, Partner A's effective share in profit is higher than what it would have been if the advance had been considered.
Given Data:
Partner A's capital contribution = Rs. 50,000
Partner B's capital contribution = Rs. 40,000
Partner C's capital contribution = Rs. 30,000
Total capital contribution = Rs. 1,20,000
Profit earned = Rs. 80,000
To find the share of each partner in the profit, we need to calculate their profit sharing ratio. The profit sharing ratio is calculated based on the capital contribution of each partner.
Partner A's profit sharing ratio = (50,000 + 20,000) / 1,20,000 = 0.5833
Partner B's profit sharing ratio = 40,000 / 1,20,000 = 0.3333
Partner C's profit sharing ratio = 30,000 / 1,20,000 = 0.2500
Now, we can calculate the share of each partner in the profit:
Partner A's share in profit = 80,000 x 0.5833 = Rs. 46,664.40
Partner B's share in profit = 80,000 x 0.3333 = Rs. 26,664.00
Partner C's share in profit = 80,000 x 0.2500 = Rs. 20,000.00
Explanation
As per the Indian Partnership Act 1932, the profit sharing ratio of partners is determined based on their capital contribution. In this case, Partner A has contributed Rs. 50,000, and he has also provided an additional advance of Rs. 20,000. Therefore, his effective capital contribution is Rs. 70,000. Partner B has contributed Rs. 40,000, and Partner C has contributed Rs. 30,000. The total capital contribution is Rs. 1,20,000.
The profit earned by the firm during the year is Rs. 80,000. To determine the share of each partner in the profit, we need to calculate their profit sharing ratio. The profit sharing ratio is calculated based on the capital contribution of each partner. Partner A's profit sharing ratio is calculated by adding his capital contribution and advance and dividing it by the total capital contribution. Partner B and Partner C's profit sharing ratio is calculated by dividing their capital contribution by the total capital contribution.
After calculating the profit sharing ratio of each partner, we can determine their share in profit by multiplying the profit earned by the firm with their profit sharing ratio. Partner A's share in profit is higher than the other partners because he has contributed more capital to the firm. However, it should be noted that Partner A has also provided an additional advance of Rs. 20,000, which has not been considered while calculating the profit sharing ratio. Therefore, Partner A's effective share in profit is higher than what it would have been if the advance had been considered.
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A,B,C were partners with capitals of 5O,OOO ;4O, OOO;3O,OOO respectively carrying on business in partnership. The firm's reported profit for the yr was 8O,OOO. As per the provision of Indian Partnership Act1932, find out the share of each partner in above amt. After taking into account that no interest has been provided in an advance by A of 2O,OOO in addition to his capital contribution.?
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A,B,C were partners with capitals of 5O,OOO ;4O, OOO;3O,OOO respectively carrying on business in partnership. The firm's reported profit for the yr was 8O,OOO. As per the provision of Indian Partnership Act1932, find out the share of each partner in above amt. After taking into account that no interest has been provided in an advance by A of 2O,OOO in addition to his capital contribution.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A,B,C were partners with capitals of 5O,OOO ;4O, OOO;3O,OOO respectively carrying on business in partnership. The firm's reported profit for the yr was 8O,OOO. As per the provision of Indian Partnership Act1932, find out the share of each partner in above amt. After taking into account that no interest has been provided in an advance by A of 2O,OOO in addition to his capital contribution.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A,B,C were partners with capitals of 5O,OOO ;4O, OOO;3O,OOO respectively carrying on business in partnership. The firm's reported profit for the yr was 8O,OOO. As per the provision of Indian Partnership Act1932, find out the share of each partner in above amt. After taking into account that no interest has been provided in an advance by A of 2O,OOO in addition to his capital contribution.?.
A,B,C were partners with capitals of 5O,OOO ;4O, OOO;3O,OOO respectively carrying on business in partnership. The firm's reported profit for the yr was 8O,OOO. As per the provision of Indian Partnership Act1932, find out the share of each partner in above amt. After taking into account that no interest has been provided in an advance by A of 2O,OOO in addition to his capital contribution.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A,B,C were partners with capitals of 5O,OOO ;4O, OOO;3O,OOO respectively carrying on business in partnership. The firm's reported profit for the yr was 8O,OOO. As per the provision of Indian Partnership Act1932, find out the share of each partner in above amt. After taking into account that no interest has been provided in an advance by A of 2O,OOO in addition to his capital contribution.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A,B,C were partners with capitals of 5O,OOO ;4O, OOO;3O,OOO respectively carrying on business in partnership. The firm's reported profit for the yr was 8O,OOO. As per the provision of Indian Partnership Act1932, find out the share of each partner in above amt. After taking into account that no interest has been provided in an advance by A of 2O,OOO in addition to his capital contribution.?.
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A,B,C were partners with capitals of 5O,OOO ;4O, OOO;3O,OOO respectively carrying on business in partnership. The firm's reported profit for the yr was 8O,OOO. As per the provision of Indian Partnership Act1932, find out the share of each partner in above amt. After taking into account that no interest has been provided in an advance by A of 2O,OOO in addition to his capital contribution.?, a detailed solution for A,B,C were partners with capitals of 5O,OOO ;4O, OOO;3O,OOO respectively carrying on business in partnership. The firm's reported profit for the yr was 8O,OOO. As per the provision of Indian Partnership Act1932, find out the share of each partner in above amt. After taking into account that no interest has been provided in an advance by A of 2O,OOO in addition to his capital contribution.? has been provided alongside types of A,B,C were partners with capitals of 5O,OOO ;4O, OOO;3O,OOO respectively carrying on business in partnership. The firm's reported profit for the yr was 8O,OOO. As per the provision of Indian Partnership Act1932, find out the share of each partner in above amt. After taking into account that no interest has been provided in an advance by A of 2O,OOO in addition to his capital contribution.? theory, EduRev gives you an
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