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A and B are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among A and B is
- a)Rs. 4,680 and Rs. 3,120
- b)Rs. 4,800 and Rs. 3,000
- c)Rs. 5,000 and Rs. 2,800
- d)None of the above
Correct answer is 'A'. Can you explain this answer?
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A and B are partners sharing profits and losses in the ratio of 3:2 ha...
Divide 7800 in th psr ..as 7800 is remaining after allowing interest on capital
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A and B are partners sharing profits and losses in the ratio of 3:2 ha...
Given information:
- A and B are partners sharing profits and losses in the ratio of 3:2.
- A has a capital of Rs. 80,000 and B has a capital of Rs. 50,000.
- They are entitled to 9% p.a. interest on capital before distributing the profits.
- The firm earned Rs. 7,800 after allowing interest on capital.
To find:
- Profits apportioned among A and B.
Solution:
1. Calculate the interest on capital for A and B:
- A's interest on capital = 9% of Rs. 80,000 = Rs. 7,200
- B's interest on capital = 9% of Rs. 50,000 = Rs. 4,500
2. Deduct the interest on capital from the total profits:
- Total profits after allowing interest on capital = Rs. 7,800 - Rs. 7,200 - Rs. 4,500 = Rs. (7,800 - 7,200 - 4,500) = Rs. 100
3. Calculate the profit sharing ratio:
- The ratio of A's capital to B's capital = Rs. 80,000 : Rs. 50,000 = 8 : 5
- The profit sharing ratio = 3 : 2
- Multiply the ratio by a common multiple to make the denominator equal to the total capital ratio.
- Multiply the ratio 3 : 2 by 8 and 5 respectively to get 24 : 16.
4. Allocate the total profits according to the profit sharing ratio:
- Total profits allocated to A = Rs. (24/40) * Rs. 100 = Rs. 60
- Total profits allocated to B = Rs. (16/40) * Rs. 100 = Rs. 40
5. Add the interest on capital to the allocated profits:
- Final profit allocated to A = Rs. 60 + Rs. 7,200 = Rs. 4,680
- Final profit allocated to B = Rs. 40 + Rs. 4,500 = Rs. 3,120
Answer:
The profits apportioned among A and B are Rs. 4,680 and Rs. 3,120 respectively. Therefore, option (a) is the correct answer.
- A and B are partners sharing profits and losses in the ratio of 3:2.
- A has a capital of Rs. 80,000 and B has a capital of Rs. 50,000.
- They are entitled to 9% p.a. interest on capital before distributing the profits.
- The firm earned Rs. 7,800 after allowing interest on capital.
To find:
- Profits apportioned among A and B.
Solution:
1. Calculate the interest on capital for A and B:
- A's interest on capital = 9% of Rs. 80,000 = Rs. 7,200
- B's interest on capital = 9% of Rs. 50,000 = Rs. 4,500
2. Deduct the interest on capital from the total profits:
- Total profits after allowing interest on capital = Rs. 7,800 - Rs. 7,200 - Rs. 4,500 = Rs. (7,800 - 7,200 - 4,500) = Rs. 100
3. Calculate the profit sharing ratio:
- The ratio of A's capital to B's capital = Rs. 80,000 : Rs. 50,000 = 8 : 5
- The profit sharing ratio = 3 : 2
- Multiply the ratio by a common multiple to make the denominator equal to the total capital ratio.
- Multiply the ratio 3 : 2 by 8 and 5 respectively to get 24 : 16.
4. Allocate the total profits according to the profit sharing ratio:
- Total profits allocated to A = Rs. (24/40) * Rs. 100 = Rs. 60
- Total profits allocated to B = Rs. (16/40) * Rs. 100 = Rs. 40
5. Add the interest on capital to the allocated profits:
- Final profit allocated to A = Rs. 60 + Rs. 7,200 = Rs. 4,680
- Final profit allocated to B = Rs. 40 + Rs. 4,500 = Rs. 3,120
Answer:
The profits apportioned among A and B are Rs. 4,680 and Rs. 3,120 respectively. Therefore, option (a) is the correct answer.
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A and B are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among A and B isa)Rs. 4,680 and Rs. 3,120b)Rs. 4,800 and Rs. 3,000c)Rs. 5,000 and Rs. 2,800d)None of the aboveCorrect answer is 'A'. Can you explain this answer?
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A and B are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among A and B isa)Rs. 4,680 and Rs. 3,120b)Rs. 4,800 and Rs. 3,000c)Rs. 5,000 and Rs. 2,800d)None of the aboveCorrect answer is 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A and B are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among A and B isa)Rs. 4,680 and Rs. 3,120b)Rs. 4,800 and Rs. 3,000c)Rs. 5,000 and Rs. 2,800d)None of the aboveCorrect answer is 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among A and B isa)Rs. 4,680 and Rs. 3,120b)Rs. 4,800 and Rs. 3,000c)Rs. 5,000 and Rs. 2,800d)None of the aboveCorrect answer is 'A'. Can you explain this answer?.
A and B are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among A and B isa)Rs. 4,680 and Rs. 3,120b)Rs. 4,800 and Rs. 3,000c)Rs. 5,000 and Rs. 2,800d)None of the aboveCorrect answer is 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A and B are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among A and B isa)Rs. 4,680 and Rs. 3,120b)Rs. 4,800 and Rs. 3,000c)Rs. 5,000 and Rs. 2,800d)None of the aboveCorrect answer is 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among A and B isa)Rs. 4,680 and Rs. 3,120b)Rs. 4,800 and Rs. 3,000c)Rs. 5,000 and Rs. 2,800d)None of the aboveCorrect answer is 'A'. Can you explain this answer?.
Solutions for A and B are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among A and B isa)Rs. 4,680 and Rs. 3,120b)Rs. 4,800 and Rs. 3,000c)Rs. 5,000 and Rs. 2,800d)None of the aboveCorrect answer is 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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