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A and B are partners from 1st April, 2017 without any partnership agreement and they bring capital of 3,500 and 2,000 respectively. On 31st Oct., 2017, A advances * 750 by way of loan to the firm without any agreement as to interest. The profit and loss account for the year discloses a profit of 1,350-75 but the partners can not agree upon the question of interest and division of profit. You are required to divide the profit between them giving reasons for your method.?
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A and B are partners from 1st April, 2017 without any partnership agre...
Introduction:
Partnership is a business model where two or more individuals come together to run a business. The partnership can be formed with or without an agreement. In this scenario, A and B formed a partnership without any agreement and brought capital of 3,500 and 2,000 respectively on 1st April, 2017. The following is the allocation of profit and loss between the partners.
Allocation of Profit and Loss:
The profit and loss account for the year ending 31st Oct., 2017, shows a profit of 1,350-75. The partners can not agree upon the question of interest and division of profit. Therefore, the allocation of profit and loss is done as follows:
- Interest on Loan: A advanced a loan of 750 to the firm without any agreement as to interest. Therefore, an interest of 6% per annum is charged on the loan, which amounts to 22.50. This interest is deducted from the profit.
- Allocation of Profit: The remaining profit after deducting interest is 1,327.50. The profit is divided between the partners in the ratio of their capital contribution, which is 7:4. Therefore, A will get 857.14 (7/11 of 1,327.50) and B will get 470.36 (4/11 of 1,327.50).
Conclusion:
Thus, the profit and loss account is divided between the partners based on their capital contribution and the interest charged on the loan advanced by A. This ensures that each partner gets a fair share of the profit and loss, and there is no dispute regarding the division of profit and interest.
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A and B are partners from 1st April, 2017 without any partnership agre...
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A and B are partners from 1st April, 2017 without any partnership agreement and they bring capital of 3,500 and 2,000 respectively. On 31st Oct., 2017, A advances * 750 by way of loan to the firm without any agreement as to interest. The profit and loss account for the year discloses a profit of 1,350-75 but the partners can not agree upon the question of interest and division of profit. You are required to divide the profit between them giving reasons for your method.?
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A and B are partners from 1st April, 2017 without any partnership agreement and they bring capital of 3,500 and 2,000 respectively. On 31st Oct., 2017, A advances * 750 by way of loan to the firm without any agreement as to interest. The profit and loss account for the year discloses a profit of 1,350-75 but the partners can not agree upon the question of interest and division of profit. You are required to divide the profit between them giving reasons for your method.? 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 partners from 1st April, 2017 without any partnership agreement and they bring capital of 3,500 and 2,000 respectively. On 31st Oct., 2017, A advances * 750 by way of loan to the firm without any agreement as to interest. The profit and loss account for the year discloses a profit of 1,350-75 but the partners can not agree upon the question of interest and division of profit. You are required to divide the profit between them giving reasons for your method.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners from 1st April, 2017 without any partnership agreement and they bring capital of 3,500 and 2,000 respectively. On 31st Oct., 2017, A advances * 750 by way of loan to the firm without any agreement as to interest. The profit and loss account for the year discloses a profit of 1,350-75 but the partners can not agree upon the question of interest and division of profit. You are required to divide the profit between them giving reasons for your method.?.
A and B are partners from 1st April, 2017 without any partnership agreement and they bring capital of 3,500 and 2,000 respectively. On 31st Oct., 2017, A advances * 750 by way of loan to the firm without any agreement as to interest. The profit and loss account for the year discloses a profit of 1,350-75 but the partners can not agree upon the question of interest and division of profit. You are required to divide the profit between them giving reasons for your method.? 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 partners from 1st April, 2017 without any partnership agreement and they bring capital of 3,500 and 2,000 respectively. On 31st Oct., 2017, A advances * 750 by way of loan to the firm without any agreement as to interest. The profit and loss account for the year discloses a profit of 1,350-75 but the partners can not agree upon the question of interest and division of profit. You are required to divide the profit between them giving reasons for your method.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners from 1st April, 2017 without any partnership agreement and they bring capital of 3,500 and 2,000 respectively. On 31st Oct., 2017, A advances * 750 by way of loan to the firm without any agreement as to interest. The profit and loss account for the year discloses a profit of 1,350-75 but the partners can not agree upon the question of interest and division of profit. You are required to divide the profit between them giving reasons for your method.?.
Solutions for A and B are partners from 1st April, 2017 without any partnership agreement and they bring capital of 3,500 and 2,000 respectively. On 31st Oct., 2017, A advances * 750 by way of loan to the firm without any agreement as to interest. The profit and loss account for the year discloses a profit of 1,350-75 but the partners can not agree upon the question of interest and division of profit. You are required to divide the profit between them giving reasons for your method.? in English & in Hindi are available as part of our courses for Commerce.
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A and B are partners from 1st April, 2017 without any partnership agreement and they bring capital of 3,500 and 2,000 respectively. On 31st Oct., 2017, A advances * 750 by way of loan to the firm without any agreement as to interest. The profit and loss account for the year discloses a profit of 1,350-75 but the partners can not agree upon the question of interest and division of profit. You are required to divide the profit between them giving reasons for your method.?, a detailed solution for A and B are partners from 1st April, 2017 without any partnership agreement and they bring capital of 3,500 and 2,000 respectively. On 31st Oct., 2017, A advances * 750 by way of loan to the firm without any agreement as to interest. The profit and loss account for the year discloses a profit of 1,350-75 but the partners can not agree upon the question of interest and division of profit. You are required to divide the profit between them giving reasons for your method.? has been provided alongside types of A and B are partners from 1st April, 2017 without any partnership agreement and they bring capital of 3,500 and 2,000 respectively. On 31st Oct., 2017, A advances * 750 by way of loan to the firm without any agreement as to interest. The profit and loss account for the year discloses a profit of 1,350-75 but the partners can not agree upon the question of interest and division of profit. You are required to divide the profit between them giving reasons for your method.? theory, EduRev gives you an
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