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X,Y and Z are the partners in the firm .At the time of division of profit for the year, there was dispute between the partners. Profit before interest on partner's capital was 6000 and Y determined interest @24% p.a. on his loan of 80000. There was no agreement on this point . Calculate the amount payable to all?
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X,Y and Z are the partners in the firm .At the time of division of pro...
Understanding the Profit Distribution
In this scenario, the profit before interest on partner's capital is 6000. However, Y has determined interest on his loan, which is not agreed upon by the partners.
Calculating Y's Interest
- Y's loan amount: 80000
- Interest rate: 24% per annum
To find the interest amount for Y:
Interest = Principal x Rate = 80000 x 24/100 = 19200
Recognizing the Profit Dispute
- The total profit before interest: 6000
- Y’s claimed interest: 19200
Since Y's interest claimed exceeds the total profit, the partners need to decide how to handle this disparity.
Profit Distribution Approach
1. Total Profit Available for Distribution: 6000
2. Maximum Possible Interest for Y: Since the total profit is less than Y’s claimed interest, Y cannot receive the full interest amount.
3. Adjusting Y's Interest:
- Since the total profit is 6000, and there is no agreement for paying Y's interest, it should be shared proportionately or adjusted against the profits.
Final Amount Payable to Each Partner
- Let's assume partners X and Z share the remaining profit after adjusting for Y’s claim proportionately.
- If Y receives no interest due to insufficient profit, the profit will be divided among X and Z.
Conclusion
- Y cannot claim the entire interest of 19200.
- The 6000 profit will be distributed, potentially resulting in equal shares or based on agreed ratios among X and Z after addressing Y's interest claim.
This situation emphasizes the importance of having clear agreements on profit sharing and interest on loans among partners.
In this scenario, the profit before interest on partner's capital is 6000. However, Y has determined interest on his loan, which is not agreed upon by the partners.
Calculating Y's Interest
- Y's loan amount: 80000
- Interest rate: 24% per annum
To find the interest amount for Y:
Interest = Principal x Rate = 80000 x 24/100 = 19200
Recognizing the Profit Dispute
- The total profit before interest: 6000
- Y’s claimed interest: 19200
Since Y's interest claimed exceeds the total profit, the partners need to decide how to handle this disparity.
Profit Distribution Approach
1. Total Profit Available for Distribution: 6000
2. Maximum Possible Interest for Y: Since the total profit is less than Y’s claimed interest, Y cannot receive the full interest amount.
3. Adjusting Y's Interest:
- Since the total profit is 6000, and there is no agreement for paying Y's interest, it should be shared proportionately or adjusted against the profits.
Final Amount Payable to Each Partner
- Let's assume partners X and Z share the remaining profit after adjusting for Y’s claim proportionately.
- If Y receives no interest due to insufficient profit, the profit will be divided among X and Z.
Conclusion
- Y cannot claim the entire interest of 19200.
- The 6000 profit will be distributed, potentially resulting in equal shares or based on agreed ratios among X and Z after addressing Y's interest claim.
This situation emphasizes the importance of having clear agreements on profit sharing and interest on loans among partners.
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X,Y and Z are the partners in the firm .At the time of division of profit for the year, there was dispute between the partners. Profit before interest on partner's capital was 6000 and Y determined interest @24% p.a. on his loan of 80000. There was no agreement on this point . Calculate the amount payable to all?
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X,Y and Z are the partners in the firm .At the time of division of profit for the year, there was dispute between the partners. Profit before interest on partner's capital was 6000 and Y determined interest @24% p.a. on his loan of 80000. There was no agreement on this point . Calculate the amount payable to all? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about X,Y and Z are the partners in the firm .At the time of division of profit for the year, there was dispute between the partners. Profit before interest on partner's capital was 6000 and Y determined interest @24% p.a. on his loan of 80000. There was no agreement on this point . Calculate the amount payable to all? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X,Y and Z are the partners in the firm .At the time of division of profit for the year, there was dispute between the partners. Profit before interest on partner's capital was 6000 and Y determined interest @24% p.a. on his loan of 80000. There was no agreement on this point . Calculate the amount payable to all?.
X,Y and Z are the partners in the firm .At the time of division of profit for the year, there was dispute between the partners. Profit before interest on partner's capital was 6000 and Y determined interest @24% p.a. on his loan of 80000. There was no agreement on this point . Calculate the amount payable to all? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about X,Y and Z are the partners in the firm .At the time of division of profit for the year, there was dispute between the partners. Profit before interest on partner's capital was 6000 and Y determined interest @24% p.a. on his loan of 80000. There was no agreement on this point . Calculate the amount payable to all? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X,Y and Z are the partners in the firm .At the time of division of profit for the year, there was dispute between the partners. Profit before interest on partner's capital was 6000 and Y determined interest @24% p.a. on his loan of 80000. There was no agreement on this point . Calculate the amount payable to all?.
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X,Y and Z are the partners in the firm .At the time of division of profit for the year, there was dispute between the partners. Profit before interest on partner's capital was 6000 and Y determined interest @24% p.a. on his loan of 80000. There was no agreement on this point . Calculate the amount payable to all?, a detailed solution for X,Y and Z are the partners in the firm .At the time of division of profit for the year, there was dispute between the partners. Profit before interest on partner's capital was 6000 and Y determined interest @24% p.a. on his loan of 80000. There was no agreement on this point . Calculate the amount payable to all? has been provided alongside types of X,Y and Z are the partners in the firm .At the time of division of profit for the year, there was dispute between the partners. Profit before interest on partner's capital was 6000 and Y determined interest @24% p.a. on his loan of 80000. There was no agreement on this point . Calculate the amount payable to all? theory, EduRev gives you an
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