CA CPT Exam  >  CA CPT Questions  >  A and B are partners in a firm sharing profit... Start Learning for Free
A and B are partners in a firm sharing profits and losses in the ratio of 3:2.  They have invested capitals of Rs.40,000 and Rs.25,000 respectively.  As per the partnership deed, they are entitled to interest on capital @ 5% p.a. before dividing the profits.  During the year, the firm earned a profit of Rs.3,900 before allowing interest.  The net profit will be apportioned as
  • a)
    Rs.260 to A and Rs.390 to B
  • b)
    Rs.390 to A and Rs.260 to B
  • c)
    Rs.2,340 to A and Rs.1,560 to B
  • d)
    Rs.1,560 to A and Rs.2,340 to B
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
A and B are partners in a firm sharing profits and losses in the ratio...
Calculation of Interest on Capital:
- A's interest on capital = 5% of Rs.40,000 = Rs.2,000
- B's interest on capital = 5% of Rs.25,000 = Rs.1,250

Calculation of Profit Available for Distribution:
- Profit before interest = Rs.3,900
- Interest on capital = Rs.2,000 + Rs.1,250 = Rs.3,250
- Profit available for distribution = Rs.3,900 - Rs.3,250 = Rs.650

Apportionment of Net Profit:
- A's share of profit = 3/5 x Rs.650 = Rs.390
- B's share of profit = 2/5 x Rs.650 = Rs.260

Therefore, option B is the correct answer as it shows that A will receive Rs.390 and B will receive Rs.260 from the net profit.
Free Test
Community Answer
A and B are partners in a firm sharing profits and losses in the ratio...
Profit and loss appointion account reeta sudha and Jyoti partners in the firm on January 1 2022 their.capital were40000 20000,and 20000 respectively

according to partnership deed
Explore Courses for CA CPT exam

Similar CA CPT Doubts

A and B are partners in a firm sharing profits and losses in the ratio of 3:2. They have invested capitals of Rs.40,000 and Rs.25,000 respectively. As per the partnership deed, they are entitled to interest on capital @ 5% p.a. before dividing the profits. During the year, the firm earned a profit of Rs.3,900 before allowing interest. The net profit will be apportioned asa)Rs.260 to A and Rs.390 to Bb)Rs.390 to A and Rs.260 to Bc)Rs.2,340 to A and Rs.1,560 to Bd)Rs.1,560 to A and Rs.2,340 to BCorrect answer is option 'B'. Can you explain this answer?
Question Description
A and B are partners in a firm sharing profits and losses in the ratio of 3:2. They have invested capitals of Rs.40,000 and Rs.25,000 respectively. As per the partnership deed, they are entitled to interest on capital @ 5% p.a. before dividing the profits. During the year, the firm earned a profit of Rs.3,900 before allowing interest. The net profit will be apportioned asa)Rs.260 to A and Rs.390 to Bb)Rs.390 to A and Rs.260 to Bc)Rs.2,340 to A and Rs.1,560 to Bd)Rs.1,560 to A and Rs.2,340 to BCorrect answer is option 'B'. Can you explain this answer? for CA CPT 2025 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about A and B are partners in a firm sharing profits and losses in the ratio of 3:2. They have invested capitals of Rs.40,000 and Rs.25,000 respectively. As per the partnership deed, they are entitled to interest on capital @ 5% p.a. before dividing the profits. During the year, the firm earned a profit of Rs.3,900 before allowing interest. The net profit will be apportioned asa)Rs.260 to A and Rs.390 to Bb)Rs.390 to A and Rs.260 to Bc)Rs.2,340 to A and Rs.1,560 to Bd)Rs.1,560 to A and Rs.2,340 to BCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA CPT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners in a firm sharing profits and losses in the ratio of 3:2. They have invested capitals of Rs.40,000 and Rs.25,000 respectively. As per the partnership deed, they are entitled to interest on capital @ 5% p.a. before dividing the profits. During the year, the firm earned a profit of Rs.3,900 before allowing interest. The net profit will be apportioned asa)Rs.260 to A and Rs.390 to Bb)Rs.390 to A and Rs.260 to Bc)Rs.2,340 to A and Rs.1,560 to Bd)Rs.1,560 to A and Rs.2,340 to BCorrect answer is option 'B'. Can you explain this answer?.
Solutions for A and B are partners in a firm sharing profits and losses in the ratio of 3:2. They have invested capitals of Rs.40,000 and Rs.25,000 respectively. As per the partnership deed, they are entitled to interest on capital @ 5% p.a. before dividing the profits. During the year, the firm earned a profit of Rs.3,900 before allowing interest. The net profit will be apportioned asa)Rs.260 to A and Rs.390 to Bb)Rs.390 to A and Rs.260 to Bc)Rs.2,340 to A and Rs.1,560 to Bd)Rs.1,560 to A and Rs.2,340 to BCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA CPT. Download more important topics, notes, lectures and mock test series for CA CPT Exam by signing up for free.
Here you can find the meaning of A and B are partners in a firm sharing profits and losses in the ratio of 3:2. They have invested capitals of Rs.40,000 and Rs.25,000 respectively. As per the partnership deed, they are entitled to interest on capital @ 5% p.a. before dividing the profits. During the year, the firm earned a profit of Rs.3,900 before allowing interest. The net profit will be apportioned asa)Rs.260 to A and Rs.390 to Bb)Rs.390 to A and Rs.260 to Bc)Rs.2,340 to A and Rs.1,560 to Bd)Rs.1,560 to A and Rs.2,340 to BCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of A and B are partners in a firm sharing profits and losses in the ratio of 3:2. They have invested capitals of Rs.40,000 and Rs.25,000 respectively. As per the partnership deed, they are entitled to interest on capital @ 5% p.a. before dividing the profits. During the year, the firm earned a profit of Rs.3,900 before allowing interest. The net profit will be apportioned asa)Rs.260 to A and Rs.390 to Bb)Rs.390 to A and Rs.260 to Bc)Rs.2,340 to A and Rs.1,560 to Bd)Rs.1,560 to A and Rs.2,340 to BCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for A and B are partners in a firm sharing profits and losses in the ratio of 3:2. They have invested capitals of Rs.40,000 and Rs.25,000 respectively. As per the partnership deed, they are entitled to interest on capital @ 5% p.a. before dividing the profits. During the year, the firm earned a profit of Rs.3,900 before allowing interest. The net profit will be apportioned asa)Rs.260 to A and Rs.390 to Bb)Rs.390 to A and Rs.260 to Bc)Rs.2,340 to A and Rs.1,560 to Bd)Rs.1,560 to A and Rs.2,340 to BCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of A and B are partners in a firm sharing profits and losses in the ratio of 3:2. They have invested capitals of Rs.40,000 and Rs.25,000 respectively. As per the partnership deed, they are entitled to interest on capital @ 5% p.a. before dividing the profits. During the year, the firm earned a profit of Rs.3,900 before allowing interest. The net profit will be apportioned asa)Rs.260 to A and Rs.390 to Bb)Rs.390 to A and Rs.260 to Bc)Rs.2,340 to A and Rs.1,560 to Bd)Rs.1,560 to A and Rs.2,340 to BCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice A and B are partners in a firm sharing profits and losses in the ratio of 3:2. They have invested capitals of Rs.40,000 and Rs.25,000 respectively. As per the partnership deed, they are entitled to interest on capital @ 5% p.a. before dividing the profits. During the year, the firm earned a profit of Rs.3,900 before allowing interest. The net profit will be apportioned asa)Rs.260 to A and Rs.390 to Bb)Rs.390 to A and Rs.260 to Bc)Rs.2,340 to A and Rs.1,560 to Bd)Rs.1,560 to A and Rs.2,340 to BCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CA CPT tests.
Explore Courses for CA CPT exam

Top Courses for CA CPT

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev