A and B are partners having capital of Rs. 50,000 and Rs. 60,000 respectively. Interest on capital is given @ 5% p.a. Profits for the year before appropriation is Rs. 4,600 provide interest on capital out of profits. Increase allocated to partners is :

- a)Rs. 3,000 and Rs. 2,500
- b)Rs. 2,090 and Rs. 2,509
- c)Rs. 2,500 and Rs. 2,091
- d)Rs. 600 and Rs. 300

Correct answer is option 'B'. Can you explain this answer?

By
Khushi Maheshwari
·
Jan 14, 2020 ·CA Foundation

4 Answers

Priyanshu Tiwari
answered
Jan 14, 2020

Interest on capital =2500 And 3000

but profit = 4600

so 2500/ 3000= 5:6

amount is divided into 5: 6

A= 4600÷11×5=2091

B=4600÷11×6=2509

but profit = 4600

so 2500/ 3000= 5:6

amount is divided into 5: 6

A= 4600÷11×5=2091

B=4600÷11×6=2509

Khushboo Agarwal
answered
Aug 17, 2018

Interest on capital is capital*rate of interest which is 2500&3000. But this is greater than the existing profit. Hence the existing profit is distributed in the ratio of interest on capital

Nishu Jain
answered
2 weeks ago

Interest on capital of A & B is 2500 & 3000 respectively .

so total interest on Capital is greater than profit . that's why interest on capital is not given to A & B and the profit is divided in their capital ratio ( 5 :6 ) becaz profit ratio is not given .

A's profit is 4600*5 / 11 =2090

B's profit is 4600*6 / 11 = 2509

then option B is correct

so total interest on Capital is greater than profit . that's why interest on capital is not given to A & B and the profit is divided in their capital ratio ( 5 :6 ) becaz profit ratio is not given .

A's profit is 4600*5 / 11 =2090

B's profit is 4600*6 / 11 = 2509

then option B is correct

This discussion on A and B are partners having capital of Rs. 50,000 and Rs. 60,000 respectively. Interest on capital is given @ 5% p.a. Profits for the year before appropriation is Rs. 4,600 provide interest on capital out of profits. Increase allocated to partners is :a)Rs. 3,000 and Rs. 2,500b)Rs. 2,090 and Rs. 2,509c)Rs. 2,500 and Rs. 2,091d)Rs. 600 and Rs. 300Correct answer is option 'B'. Can you explain this answer? is done on EduRev Study Group by CA Foundation Students. The Questions and
Answers of A and B are partners having capital of Rs. 50,000 and Rs. 60,000 respectively. Interest on capital is given @ 5% p.a. Profits for the year before appropriation is Rs. 4,600 provide interest on capital out of profits. Increase allocated to partners is :a)Rs. 3,000 and Rs. 2,500b)Rs. 2,090 and Rs. 2,509c)Rs. 2,500 and Rs. 2,091d)Rs. 600 and Rs. 300Correct answer is option 'B'. Can you explain this answer? are solved by group of students and teacher of CA Foundation, which is also the largest student
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A and B are partners having capital of Rs. 50,000 and Rs. 60,000 respectively. Interest on capital is given @ 5% p.a. Profits for the year before appropriation is Rs. 4,600 provide interest on capital out of profits. Increase allocated to partners is :a)Rs. 3,000 and Rs. 2,500b)Rs. 2,090 and Rs. 2,509c)Rs. 2,500 and Rs. 2,091d)Rs. 600 and Rs. 300Correct answer is option 'B'. Can you explain this answer? over here on EduRev! Apart from being the largest CA Foundation community, EduRev has the largest solved
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