A B C PARTNERS. THEIR CAPITALS ARE A-30000 B-20000 C-10000 RESPECTIVEL...
Calculation of B's salary and C's commission:
- B's salary for the year = 500 * 12 = 6000
- C's commission = 5% of (30000 - 6000) = 5% of 24000 = 1200
Adjustments for B and C:
- B's share of profit after salary = 6000
- C's share of profit after commission = 1200
Revised profits for distribution:
- Total profits for distribution = 30000 - 6000 - 1200 = 22800
Profit sharing ratio:
- Revised profit sharing ratio = 5:3:2
- Share of A = 5/10 * 22800 = 11400
- Share of B = 3/10 * 22800 = 6840
- Share of C = 2/10 * 22800 = 4560
Final distribution:
- A's share = 11400
- B's share = 6840 + 6000 = 12840
- C's share = 4560 + 1200 = 5760
Conclusion:
After adjusting for B's salary and C's commission, the profits should be distributed in the ratio of 11400:12840:5760 among partners A, B, and C respectively.