Partnership between Nobi, Annapurna, and Chintu:



Introduction:


Nobi, Annapurna, and Chintu have entered into a partnership on 1 July 2022. They have decided to share the profits and losses in a specific ratio and have also agreed to charge interest on capital. Let's understand the details of this partnership arrangement.

Partnership Ratio:


The profit and loss sharing ratio between the partners is mentioned as 5:3:2. This means that out of the total profit or loss, Nobi will receive 5 parts, Annapurna will receive 3 parts, and Chintu will receive 2 parts.

Interest on Capital:


The partners have also agreed to charge interest on the capital invested. The rate of interest is mentioned as 8% per annum. This interest is charged on the capital contributed by each partner.

Capital Contribution:


According to the given information, Nobi has contributed a capital of Rs. 1,60,000 and Annapurna has contributed a capital of Rs. 3,00,000. However, the capital contribution of Chintu is not mentioned.

Explanation:


To explain this partnership arrangement further, we need to calculate the interest on the capital and the share of profit for each partner. Let's break down the explanation into the following points:

1. Calculation of Interest on Capital:


To calculate the interest on capital, we will multiply the capital contributed by each partner with the interest rate of 8% per annum. Since Nobi has contributed Rs. 1,60,000, the interest on his capital will be Rs. (1,60,000 * 8/100).

2. Calculation of Share of Profit:


The share of profit for each partner can be calculated by multiplying the total profit with their respective profit sharing ratio. The total profit will be calculated by deducting the total expenses from the total revenue.

3. Guaranteed Share of Profit for Chintu:


According to the given information, Chintu has a guaranteed share of profit after charging interest on capital. This means that Chintu will receive a specific amount as his share of profit regardless of the actual profit earned by the partnership. The guaranteed share of profit for Chintu can be calculated by subtracting the interest on capital from his share of profit.

4. Distribution of Remaining Profit:


After calculating the guaranteed share of profit for Chintu, the remaining profit can be distributed among the partners in their profit sharing ratio. This distribution will be based on the actual profit earned by the partnership.

Conclusion:


In conclusion, Nobi, Annapurna, and Chintu have entered into a partnership where they will share the profits and losses in the ratio of 5:3:2. They have also agreed to charge interest on capital at a rate of 8% per annum. The capital contributed by Nobi and Annapurna is mentioned, but the capital contributed by Chintu is not given. The partnership arrangement involves calculating the interest on capital, determining the share of profit for each partner, and allocating a guaranteed share