Commerce Exam > Commerce Questions > A b c head capitals of rs 50,000 rs 40,000 an...
Start Learning for Free
A b c head capitals of rs 50,000 rs 40,000 and rs 30,000 for carrying on business in partnership the firm's reported profit for the year was rs 80000 as per provision of the indian partnership act 1932 find out the share of each partner in the above amount after taking into account that no interest has been provided on advance by a of rs 20,000 in addition to his capital contribution?
Most Upvoted Answer
A b c head capitals of rs 50,000 rs 40,000 and rs 30,000 for carrying ...
Solution:
Calculation of profit sharing ratio:
- A's capital = Rs 50,000 + Rs 20,000 (advance) = Rs 70,000
- B's capital = Rs 40,000
- C's capital = Rs 30,000
- Total capital = Rs 1,40,000
A's share in the profit:
- A's share = (A's capital / Total capital) * Total profit
- A's share = (70,000 / 1,40,000) * 80,000
- A's share = Rs 40,000
B's share in the profit:
- B's share = (B's capital / Total capital) * Total profit
- B's share = (40,000 / 1,40,000) * 80,000
- B's share = Rs 22,857.14
C's share in the profit:
- C's share = (C's capital / Total capital) * Total profit
- C's share = (30,000 / 1,40,000) * 80,000
- C's share = Rs 17,142.86
Explanation:
- The partnership deed should specify the profit sharing ratio among the partners. In the absence of such a clause, the profit sharing ratio is assumed to be equal among the partners.
- In this case, the capital contribution of each partner is different and hence, the profit sharing ratio needs to be calculated based on their capital contributions.
- A has contributed an additional amount of Rs 20,000 as an advance, which is not treated as a loan and hence, no interest is provided on it. This amount is treated as a part of A's capital contribution for the purpose of calculating the profit sharing ratio.
- The profit sharing ratio is calculated based on the capital contribution of each partner. This ratio determines the share of each partner in the profits of the firm.
- In this case, A has the highest capital contribution and hence, he gets the highest share in the profits. B and C get their shares based on their capital contributions.
- This method of sharing profits ensures that the partners are rewarded for their capital contribution and the risks associated with it.
Calculation of profit sharing ratio:
- A's capital = Rs 50,000 + Rs 20,000 (advance) = Rs 70,000
- B's capital = Rs 40,000
- C's capital = Rs 30,000
- Total capital = Rs 1,40,000
A's share in the profit:
- A's share = (A's capital / Total capital) * Total profit
- A's share = (70,000 / 1,40,000) * 80,000
- A's share = Rs 40,000
B's share in the profit:
- B's share = (B's capital / Total capital) * Total profit
- B's share = (40,000 / 1,40,000) * 80,000
- B's share = Rs 22,857.14
C's share in the profit:
- C's share = (C's capital / Total capital) * Total profit
- C's share = (30,000 / 1,40,000) * 80,000
- C's share = Rs 17,142.86
Explanation:
- The partnership deed should specify the profit sharing ratio among the partners. In the absence of such a clause, the profit sharing ratio is assumed to be equal among the partners.
- In this case, the capital contribution of each partner is different and hence, the profit sharing ratio needs to be calculated based on their capital contributions.
- A has contributed an additional amount of Rs 20,000 as an advance, which is not treated as a loan and hence, no interest is provided on it. This amount is treated as a part of A's capital contribution for the purpose of calculating the profit sharing ratio.
- The profit sharing ratio is calculated based on the capital contribution of each partner. This ratio determines the share of each partner in the profits of the firm.
- In this case, A has the highest capital contribution and hence, he gets the highest share in the profits. B and C get their shares based on their capital contributions.
- This method of sharing profits ensures that the partners are rewarded for their capital contribution and the risks associated with it.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
A b c head capitals of rs 50,000 rs 40,000 and rs 30,000 for carrying on business in partnership the firm's reported profit for the year was rs 80000 as per provision of the indian partnership act 1932 find out the share of each partner in the above amount after taking into account that no interest has been provided on advance by a of rs 20,000 in addition to his capital contribution?
Question Description
A b c head capitals of rs 50,000 rs 40,000 and rs 30,000 for carrying on business in partnership the firm's reported profit for the year was rs 80000 as per provision of the indian partnership act 1932 find out the share of each partner in the above amount after taking into account that no interest has been provided on advance by a of rs 20,000 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 head capitals of rs 50,000 rs 40,000 and rs 30,000 for carrying on business in partnership the firm's reported profit for the year was rs 80000 as per provision of the indian partnership act 1932 find out the share of each partner in the above amount after taking into account that no interest has been provided on advance by a of rs 20,000 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 head capitals of rs 50,000 rs 40,000 and rs 30,000 for carrying on business in partnership the firm's reported profit for the year was rs 80000 as per provision of the indian partnership act 1932 find out the share of each partner in the above amount after taking into account that no interest has been provided on advance by a of rs 20,000 in addition to his capital contribution?.
A b c head capitals of rs 50,000 rs 40,000 and rs 30,000 for carrying on business in partnership the firm's reported profit for the year was rs 80000 as per provision of the indian partnership act 1932 find out the share of each partner in the above amount after taking into account that no interest has been provided on advance by a of rs 20,000 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 head capitals of rs 50,000 rs 40,000 and rs 30,000 for carrying on business in partnership the firm's reported profit for the year was rs 80000 as per provision of the indian partnership act 1932 find out the share of each partner in the above amount after taking into account that no interest has been provided on advance by a of rs 20,000 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 head capitals of rs 50,000 rs 40,000 and rs 30,000 for carrying on business in partnership the firm's reported profit for the year was rs 80000 as per provision of the indian partnership act 1932 find out the share of each partner in the above amount after taking into account that no interest has been provided on advance by a of rs 20,000 in addition to his capital contribution?.
Solutions for A b c head capitals of rs 50,000 rs 40,000 and rs 30,000 for carrying on business in partnership the firm's reported profit for the year was rs 80000 as per provision of the indian partnership act 1932 find out the share of each partner in the above amount after taking into account that no interest has been provided on advance by a of rs 20,000 in addition to his capital contribution? 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.
Here you can find the meaning of A b c head capitals of rs 50,000 rs 40,000 and rs 30,000 for carrying on business in partnership the firm's reported profit for the year was rs 80000 as per provision of the indian partnership act 1932 find out the share of each partner in the above amount after taking into account that no interest has been provided on advance by a of rs 20,000 in addition to his capital contribution? defined & explained in the simplest way possible. Besides giving the explanation of
A b c head capitals of rs 50,000 rs 40,000 and rs 30,000 for carrying on business in partnership the firm's reported profit for the year was rs 80000 as per provision of the indian partnership act 1932 find out the share of each partner in the above amount after taking into account that no interest has been provided on advance by a of rs 20,000 in addition to his capital contribution?, a detailed solution for A b c head capitals of rs 50,000 rs 40,000 and rs 30,000 for carrying on business in partnership the firm's reported profit for the year was rs 80000 as per provision of the indian partnership act 1932 find out the share of each partner in the above amount after taking into account that no interest has been provided on advance by a of rs 20,000 in addition to his capital contribution? has been provided alongside types of A b c head capitals of rs 50,000 rs 40,000 and rs 30,000 for carrying on business in partnership the firm's reported profit for the year was rs 80000 as per provision of the indian partnership act 1932 find out the share of each partner in the above amount after taking into account that no interest has been provided on advance by a of rs 20,000 in addition to his capital contribution? theory, EduRev gives you an
ample number of questions to practice A b c head capitals of rs 50,000 rs 40,000 and rs 30,000 for carrying on business in partnership the firm's reported profit for the year was rs 80000 as per provision of the indian partnership act 1932 find out the share of each partner in the above amount after taking into account that no interest has been provided on advance by a of rs 20,000 in addition to his capital contribution? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup