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Bill and Monica are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among Bill and Monica is: 
  • a)
    Rs.4,680 and Rs.3,120
  • b)
    Rs.4,800 and Rs.3,000
  • c)
    Rs.5,000 and Rs.2,800
  • d)
    None of the above
  • e)
     
Correct answer is option 'A'. Can you explain this answer?
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Given Information:
- Partnership between Bill and Monica.
- Profits and losses shared in the ratio of 3:2.
- Capital of Bill is Rs. 80,000 and capital of Monica is Rs. 50,000.
- Both partners entitled to 9% p.a. interest on capital before distributing profits.
- Firm earned Rs. 7,800 after allowing interest on capital.

To find:
- Profits apportioned among Bill and Monica.

Approach:
1. Calculate interest on capital for both partners.
2. Deduct the interest on capital from the total profit earned to find the remaining profit.
3. Distribute the remaining profit in the ratio of 3:2 between Bill and Monica.

Calculation:
1. Interest on Capital:
- Bill's capital: Rs. 80,000
- Monica's capital: Rs. 50,000
- Rate of interest: 9%

Interest on Bill's capital = (Bill's capital * Rate of interest) = (Rs. 80,000 * 9/100) = Rs. 7,200
Interest on Monica's capital = (Monica's capital * Rate of interest) = (Rs. 50,000 * 9/100) = Rs. 4,500

2. Remaining Profit:
Total profit earned = Rs. 7,800
Interest on capital = (Interest on Bill's capital + Interest on Monica's capital) = (Rs. 7,200 + Rs. 4,500) = Rs. 11,700

Remaining profit = (Total profit earned - Interest on capital) = (Rs. 7,800 - Rs. 11,700) = (-Rs. 3,900)

3. Distribution of Remaining Profit:
- Ratio of profits shared between Bill and Monica = 3:2

Share of Bill = (Remaining profit * Share ratio of Bill) = (-Rs. 3,900 * 3/5) = -Rs. 2,340
Share of Monica = (Remaining profit * Share ratio of Monica) = (-Rs. 3,900 * 2/5) = -Rs. 1,560

Note: The negative sign indicates that both partners have incurred losses.

Final Result:
- Profits apportioned among Bill and Monica:
- Share of Bill = Rs. 2,340 (loss)
- Share of Monica = Rs. 1,560 (loss)

Therefore, the correct answer is option 'A': Rs. 4,680 and Rs. 3,120.
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Bill and Monica are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among Bill and Monica is:a)Rs.4,680 and Rs.3,120b)Rs.4,800 and Rs.3,000c)Rs.5,000 and Rs.2,800d)None of the abovee)Correct answer is option 'A'. Can you explain this answer?
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Bill and Monica are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among Bill and Monica is:a)Rs.4,680 and Rs.3,120b)Rs.4,800 and Rs.3,000c)Rs.5,000 and Rs.2,800d)None of the abovee)Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Bill and Monica are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among Bill and Monica is:a)Rs.4,680 and Rs.3,120b)Rs.4,800 and Rs.3,000c)Rs.5,000 and Rs.2,800d)None of the abovee)Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bill and Monica are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among Bill and Monica is:a)Rs.4,680 and Rs.3,120b)Rs.4,800 and Rs.3,000c)Rs.5,000 and Rs.2,800d)None of the abovee)Correct answer is option 'A'. Can you explain this answer?.
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