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How should a profit of 7500rs Be divided two partner s when they contribute 15000rs for 6 months and 12000 for 5 months respectively and agree to share profit and losses as per effective capital ratio?
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How should a profit of 7500rs Be divided two partner s when they contr...
Calculation of Effective Capital
First, we need to calculate the effective capital for each partner based on their contributions and the duration for which the capital was invested.
Partner A contributed Rs 15,000 for 6 months, so the effective capital for Partner A can be calculated as:
Effective Capital for A = (Contribution by A) x (Duration of contribution)
= Rs 15,000 x 6
= Rs 90,000
Similarly, Partner B contributed Rs 12,000 for 5 months, so the effective capital for Partner B can be calculated as:
Effective Capital for B = (Contribution by B) x (Duration of contribution)
= Rs 12,000 x 5
= Rs 60,000
Calculation of Ratio
Next, we need to calculate the ratio of effective capital for each partner.
Effective Capital Ratio for A = (Effective Capital for A) / (Total Effective Capital)
= Rs 90,000 / (Rs 90,000 + Rs 60,000)
= 0.6 or 60%
Effective Capital Ratio for B = (Effective Capital for B) / (Total Effective Capital)
= Rs 60,000 / (Rs 90,000 + Rs 60,000)
= 0.4 or 40%
Division of Profit
To divide the profit of Rs 7,500 between the partners, we will use the effective capital ratio.
Profit for A = (Profit) x (Effective Capital Ratio for A)
= Rs 7,500 x 0.6
= Rs 4,500
Profit for B = (Profit) x (Effective Capital Ratio for B)
= Rs 7,500 x 0.4
= Rs 3,000
Final Distribution
Therefore, the profit of Rs 7,500 will be divided between the partners as follows:
Partner A: Rs 4,500
Partner B: Rs 3,000
Explanation
In this question, we are given the contributions made by two partners, Partner A and Partner B, for a certain duration. We need to calculate the effective capital for each partner and then determine the ratio of their effective capital. Using this ratio, we can divide the profit between the partners.
The effective capital is calculated by multiplying the contribution made by each partner with the duration for which the capital was invested. Then, the effective capital ratio is calculated by dividing the effective capital of each partner by the total effective capital.
Finally, the profit is divided between the partners based on their effective capital ratio. Partner A receives 60% of the profit while Partner B receives 40% of the profit.
This method ensures that the profit sharing is based on the relative contributions made by each partner and the duration for which their capital was invested.
First, we need to calculate the effective capital for each partner based on their contributions and the duration for which the capital was invested.
Partner A contributed Rs 15,000 for 6 months, so the effective capital for Partner A can be calculated as:
Effective Capital for A = (Contribution by A) x (Duration of contribution)
= Rs 15,000 x 6
= Rs 90,000
Similarly, Partner B contributed Rs 12,000 for 5 months, so the effective capital for Partner B can be calculated as:
Effective Capital for B = (Contribution by B) x (Duration of contribution)
= Rs 12,000 x 5
= Rs 60,000
Calculation of Ratio
Next, we need to calculate the ratio of effective capital for each partner.
Effective Capital Ratio for A = (Effective Capital for A) / (Total Effective Capital)
= Rs 90,000 / (Rs 90,000 + Rs 60,000)
= 0.6 or 60%
Effective Capital Ratio for B = (Effective Capital for B) / (Total Effective Capital)
= Rs 60,000 / (Rs 90,000 + Rs 60,000)
= 0.4 or 40%
Division of Profit
To divide the profit of Rs 7,500 between the partners, we will use the effective capital ratio.
Profit for A = (Profit) x (Effective Capital Ratio for A)
= Rs 7,500 x 0.6
= Rs 4,500
Profit for B = (Profit) x (Effective Capital Ratio for B)
= Rs 7,500 x 0.4
= Rs 3,000
Final Distribution
Therefore, the profit of Rs 7,500 will be divided between the partners as follows:
Partner A: Rs 4,500
Partner B: Rs 3,000
Explanation
In this question, we are given the contributions made by two partners, Partner A and Partner B, for a certain duration. We need to calculate the effective capital for each partner and then determine the ratio of their effective capital. Using this ratio, we can divide the profit between the partners.
The effective capital is calculated by multiplying the contribution made by each partner with the duration for which the capital was invested. Then, the effective capital ratio is calculated by dividing the effective capital of each partner by the total effective capital.
Finally, the profit is divided between the partners based on their effective capital ratio. Partner A receives 60% of the profit while Partner B receives 40% of the profit.
This method ensures that the profit sharing is based on the relative contributions made by each partner and the duration for which their capital was invested.
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How should a profit of 7500rs Be divided two partner s when they contribute 15000rs for 6 months and 12000 for 5 months respectively and agree to share profit and losses as per effective capital ratio?
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How should a profit of 7500rs Be divided two partner s when they contribute 15000rs for 6 months and 12000 for 5 months respectively and agree to share profit and losses as per effective capital ratio? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about How should a profit of 7500rs Be divided two partner s when they contribute 15000rs for 6 months and 12000 for 5 months respectively and agree to share profit and losses as per effective capital ratio? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How should a profit of 7500rs Be divided two partner s when they contribute 15000rs for 6 months and 12000 for 5 months respectively and agree to share profit and losses as per effective capital ratio?.
How should a profit of 7500rs Be divided two partner s when they contribute 15000rs for 6 months and 12000 for 5 months respectively and agree to share profit and losses as per effective capital ratio? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about How should a profit of 7500rs Be divided two partner s when they contribute 15000rs for 6 months and 12000 for 5 months respectively and agree to share profit and losses as per effective capital ratio? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How should a profit of 7500rs Be divided two partner s when they contribute 15000rs for 6 months and 12000 for 5 months respectively and agree to share profit and losses as per effective capital ratio?.
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