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A, B and C had capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respectively for carrying on business in partnership. The firm’s reported profit for the year was Rs. 80,000. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of Rs. 20,000, in addition to his capital contribution.
- a)Rs. 26,267 for Partner B and C & Rs. 27,466 for partner A.
- b)Rs. 26,667 each partner.
- c)Rs. 33,333 for A, Rs. 26,667 and Rs. 20,000 for C.
- d)Rs. 30,000 each partner.
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
A, B and C had capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respe...
As per the provisions of the Indian Partnership Act of 1932, interest @ 6% p.a. is provided to the partners for any amount advanced by them to the firm by way of loan. Here, A will be entitled to receive interest of Rs 1,200 (20,000 @ 6%). Thereafter, the remaining profits (80,000−-1,200) will be shared equally among A, B and C.
So, A will get Rs 27,466 (his share of profit + interest on loan i.e. Rs 26,266 + 1,200)
B & C will get Rs 26267 each.
Most Upvoted Answer
A, B and C had capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respe...
Calculation of profit sharing ratio
The profit sharing ratio of the partners is calculated as per the provisions of the Indian Partnership Act, 1932. The steps involved in calculating the profit sharing ratio are as follows:
Step 1: Calculate the total amount of capital contributed by all partners.
Total capital = Rs. 50,000 + Rs. 40,000 + Rs. 30,000 = Rs. 1,20,000
Step 2: Calculate the total amount of interest-free advance given by Partner A.
Interest-free advance by Partner A = Rs. 20,000
Step 3: Calculate the adjusted capital contribution of each partner.
Partner A = Rs. 50,000 + Rs. 20,000 = Rs. 70,000
Partner B = Rs. 40,000
Partner C = Rs. 30,000
Step 4: Calculate the profit sharing ratio of each partner.
Partner A = (70,000/1,40,000) x 80,000 = Rs. 40,000
Partner B = (40,000/1,40,000) x 80,000 = Rs. 22,857
Partner C = (30,000/1,40,000) x 80,000 = Rs. 17,143
Step 5: Adjust the profit sharing ratio of Partner A for the interest-free advance.
Adjusted profit sharing ratio of Partner A = Rs. 40,000 - Rs. 20,000 = Rs. 20,000
Final profit sharing ratio
Partner A = Rs. 20,000/Rs. 80,000 = 25%
Partner B = Rs. 22,857/Rs. 80,000 = 28.57%
Partner C = Rs. 17,143/Rs. 80,000 = 21.43%
Answer
The share of each partner in the profit of Rs. 80,000 after taking into account the interest-free advance by Partner A is:
Partner A = Rs. 20,000 + (25% of Rs. 60,000) = Rs. 26,267
Partner B = 28.57% of Rs. 80,000 = Rs. 22,856.80 ≈ Rs. 22,857
Partner C = 21.43% of Rs. 80,000 = Rs. 17,142.80 ≈ Rs. 17,143
Therefore, option (a) Rs. 26,267 for Partner B and C Rs. 27,466 for partner A is the correct answer.
The profit sharing ratio of the partners is calculated as per the provisions of the Indian Partnership Act, 1932. The steps involved in calculating the profit sharing ratio are as follows:
Step 1: Calculate the total amount of capital contributed by all partners.
Total capital = Rs. 50,000 + Rs. 40,000 + Rs. 30,000 = Rs. 1,20,000
Step 2: Calculate the total amount of interest-free advance given by Partner A.
Interest-free advance by Partner A = Rs. 20,000
Step 3: Calculate the adjusted capital contribution of each partner.
Partner A = Rs. 50,000 + Rs. 20,000 = Rs. 70,000
Partner B = Rs. 40,000
Partner C = Rs. 30,000
Step 4: Calculate the profit sharing ratio of each partner.
Partner A = (70,000/1,40,000) x 80,000 = Rs. 40,000
Partner B = (40,000/1,40,000) x 80,000 = Rs. 22,857
Partner C = (30,000/1,40,000) x 80,000 = Rs. 17,143
Step 5: Adjust the profit sharing ratio of Partner A for the interest-free advance.
Adjusted profit sharing ratio of Partner A = Rs. 40,000 - Rs. 20,000 = Rs. 20,000
Final profit sharing ratio
Partner A = Rs. 20,000/Rs. 80,000 = 25%
Partner B = Rs. 22,857/Rs. 80,000 = 28.57%
Partner C = Rs. 17,143/Rs. 80,000 = 21.43%
Answer
The share of each partner in the profit of Rs. 80,000 after taking into account the interest-free advance by Partner A is:
Partner A = Rs. 20,000 + (25% of Rs. 60,000) = Rs. 26,267
Partner B = 28.57% of Rs. 80,000 = Rs. 22,856.80 ≈ Rs. 22,857
Partner C = 21.43% of Rs. 80,000 = Rs. 17,142.80 ≈ Rs. 17,143
Therefore, option (a) Rs. 26,267 for Partner B and C Rs. 27,466 for partner A is the correct answer.
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A, B and C had capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respectively for carrying on business in partnership. The firm’s reported profit for the year was Rs. 80,000. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has beenprovided on an advance by A of Rs. 20,000, in addition to his capital contribution.a)Rs. 26,267 for Partner B and C & Rs. 27,466 for partner A.b)Rs. 26,667 each partner.c)Rs. 33,333 for A, Rs. 26,667 and Rs. 20,000 for C.d)Rs. 30,000 each partner.Correct answer is option 'A'. Can you explain this answer?
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A, B and C had capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respectively for carrying on business in partnership. The firm’s reported profit for the year was Rs. 80,000. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has beenprovided on an advance by A of Rs. 20,000, in addition to his capital contribution.a)Rs. 26,267 for Partner B and C & Rs. 27,466 for partner A.b)Rs. 26,667 each partner.c)Rs. 33,333 for A, Rs. 26,667 and Rs. 20,000 for C.d)Rs. 30,000 each partner.Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A, B and C had capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respectively for carrying on business in partnership. The firm’s reported profit for the year was Rs. 80,000. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has beenprovided on an advance by A of Rs. 20,000, in addition to his capital contribution.a)Rs. 26,267 for Partner B and C & Rs. 27,466 for partner A.b)Rs. 26,667 each partner.c)Rs. 33,333 for A, Rs. 26,667 and Rs. 20,000 for C.d)Rs. 30,000 each partner.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A, B and C had capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respectively for carrying on business in partnership. The firm’s reported profit for the year was Rs. 80,000. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has beenprovided on an advance by A of Rs. 20,000, in addition to his capital contribution.a)Rs. 26,267 for Partner B and C & Rs. 27,466 for partner A.b)Rs. 26,667 each partner.c)Rs. 33,333 for A, Rs. 26,667 and Rs. 20,000 for C.d)Rs. 30,000 each partner.Correct answer is option 'A'. Can you explain this answer?.
A, B and C had capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respectively for carrying on business in partnership. The firm’s reported profit for the year was Rs. 80,000. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has beenprovided on an advance by A of Rs. 20,000, in addition to his capital contribution.a)Rs. 26,267 for Partner B and C & Rs. 27,466 for partner A.b)Rs. 26,667 each partner.c)Rs. 33,333 for A, Rs. 26,667 and Rs. 20,000 for C.d)Rs. 30,000 each partner.Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A, B and C had capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respectively for carrying on business in partnership. The firm’s reported profit for the year was Rs. 80,000. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has beenprovided on an advance by A of Rs. 20,000, in addition to his capital contribution.a)Rs. 26,267 for Partner B and C & Rs. 27,466 for partner A.b)Rs. 26,667 each partner.c)Rs. 33,333 for A, Rs. 26,667 and Rs. 20,000 for C.d)Rs. 30,000 each partner.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A, B and C had capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respectively for carrying on business in partnership. The firm’s reported profit for the year was Rs. 80,000. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has beenprovided on an advance by A of Rs. 20,000, in addition to his capital contribution.a)Rs. 26,267 for Partner B and C & Rs. 27,466 for partner A.b)Rs. 26,667 each partner.c)Rs. 33,333 for A, Rs. 26,667 and Rs. 20,000 for C.d)Rs. 30,000 each partner.Correct answer is option 'A'. Can you explain this answer?.
Solutions for A, B and C had capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respectively for carrying on business in partnership. The firm’s reported profit for the year was Rs. 80,000. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has beenprovided on an advance by A of Rs. 20,000, in addition to his capital contribution.a)Rs. 26,267 for Partner B and C & Rs. 27,466 for partner A.b)Rs. 26,667 each partner.c)Rs. 33,333 for A, Rs. 26,667 and Rs. 20,000 for C.d)Rs. 30,000 each partner.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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A, B and C had capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respectively for carrying on business in partnership. The firm’s reported profit for the year was Rs. 80,000. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has beenprovided on an advance by A of Rs. 20,000, in addition to his capital contribution.a)Rs. 26,267 for Partner B and C & Rs. 27,466 for partner A.b)Rs. 26,667 each partner.c)Rs. 33,333 for A, Rs. 26,667 and Rs. 20,000 for C.d)Rs. 30,000 each partner.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for A, B and C had capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respectively for carrying on business in partnership. The firm’s reported profit for the year was Rs. 80,000. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has beenprovided on an advance by A of Rs. 20,000, in addition to his capital contribution.a)Rs. 26,267 for Partner B and C & Rs. 27,466 for partner A.b)Rs. 26,667 each partner.c)Rs. 33,333 for A, Rs. 26,667 and Rs. 20,000 for C.d)Rs. 30,000 each partner.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of A, B and C had capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respectively for carrying on business in partnership. The firm’s reported profit for the year was Rs. 80,000. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has beenprovided on an advance by A of Rs. 20,000, in addition to his capital contribution.a)Rs. 26,267 for Partner B and C & Rs. 27,466 for partner A.b)Rs. 26,667 each partner.c)Rs. 33,333 for A, Rs. 26,667 and Rs. 20,000 for C.d)Rs. 30,000 each partner.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A, B and C had capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respectively for carrying on business in partnership. The firm’s reported profit for the year was Rs. 80,000. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has beenprovided on an advance by A of Rs. 20,000, in addition to his capital contribution.a)Rs. 26,267 for Partner B and C & Rs. 27,466 for partner A.b)Rs. 26,667 each partner.c)Rs. 33,333 for A, Rs. 26,667 and Rs. 20,000 for C.d)Rs. 30,000 each partner.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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