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A and B are partners in a firm with capitals of rupees 5,00,000 and 8,00,000. they do not have any partnership deed. during the year ended 31st march , 2018 they made a profit of rupee 1,80,000. B is claiming that intrest on capital be allowed @5%per annum,but A is not agreeing to this. show the distribution of profits by preparing profit &loss appropriation A/C.?
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A and B are partners in a firm with capitals of rupees 5,00,000 and 8,...
And loss appropriation account under the following scenarios:

Scenario 1: No interest on capital is allowed
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Profit: 1,80,000

A's capital: 5,00,000
B's capital: 8,00,000

Profit sharing ratio:
A = 5,00,000/13,00,000 = 5/13
B = 8,00,000/13,00,000 = 8/13

Distribution of profit:
A's share = 1,80,000 * (5/13) = 69,230.77
B's share = 1,80,000 * (8/13) = 1,10,769.23

Scenario 2: Interest on capital is allowed at 5% per annum
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Interest on A's capital = 5,00,000 * (5/100) = 25,000
Interest on B's capital = 8,00,000 * (5/100) = 40,000

Profit after deducting interest on capital:
Profit: 1,80,000 - 25,000 - 40,000 = 1,15,000

A's capital: 5,00,000
B's capital: 8,00,000

Profit sharing ratio:
A = 5,00,000/13,00,000 = 5/13
B = 8,00,000/13,00,000 = 8/13

Distribution of profit:
A's share = 1,15,000 * (5/13) = 44,230.77
B's share = 1,15,000 * (8/13) = 70,769.23

Therefore, in scenario 1 where no interest on capital is allowed, A would receive 69,230.77 and B would receive 1,10,769.23. In scenario 2 where interest on capital is allowed at 5% per annum, A would receive 44,230.77 and B would receive 70,769.23.
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A and B are partners in a firm with capitals of rupees 5,00,000 and 8,00,000. they do not have any partnership deed. during the year ended 31st march , 2018 they made a profit of rupee 1,80,000. B is claiming that intrest on capital be allowed @5%per annum,but A is not agreeing to this. show the distribution of profits by preparing profit &loss appropriation A/C.?
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A and B are partners in a firm with capitals of rupees 5,00,000 and 8,00,000. they do not have any partnership deed. during the year ended 31st march , 2018 they made a profit of rupee 1,80,000. B is claiming that intrest on capital be allowed @5%per annum,but A is not agreeing to this. show the distribution of profits by preparing profit &loss appropriation A/C.? 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 in a firm with capitals of rupees 5,00,000 and 8,00,000. they do not have any partnership deed. during the year ended 31st march , 2018 they made a profit of rupee 1,80,000. B is claiming that intrest on capital be allowed @5%per annum,but A is not agreeing to this. show the distribution of profits by preparing profit &loss appropriation A/C.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners in a firm with capitals of rupees 5,00,000 and 8,00,000. they do not have any partnership deed. during the year ended 31st march , 2018 they made a profit of rupee 1,80,000. B is claiming that intrest on capital be allowed @5%per annum,but A is not agreeing to this. show the distribution of profits by preparing profit &loss appropriation A/C.?.
Solutions for A and B are partners in a firm with capitals of rupees 5,00,000 and 8,00,000. they do not have any partnership deed. during the year ended 31st march , 2018 they made a profit of rupee 1,80,000. B is claiming that intrest on capital be allowed @5%per annum,but A is not agreeing to this. show the distribution of profits by preparing profit &loss appropriation A/C.? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
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