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Bill and Monica 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 Bill and Monica 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 option 'A'. Can you explain this answer?
Most Upvoted Answer
Bill and Monica are partners sharing profits and losses in the ratio o...
Calculation of Interest on capital:
- Bill's interest on capital = 9% of Rs. 80,000 = Rs. 7,200
- Monica's interest on capital = 9% of Rs. 50,000 = Rs. 4,500
- Total interest on capital = Rs. 11,700

Calculation of profits:
- Total earnings of the firm = Rs. 7,800
- Interest on capital = Rs. 11,700
- Profit before distribution = Rs. 19,500
- Profit sharing ratio = 3:2
- Bill's share = (3/5) * Rs. 19,500 = Rs. 11,700
- Monica's share = (2/5) * Rs. 19,500 = Rs. 7,800

Calculation of final profits after deducting interest on capital:
- Bill's share = Rs. 11,700 - Rs. 7,200 = Rs. 4,500
- Monica's share = Rs. 7,800 - Rs. 4,500 = Rs. 3,300

Therefore, the profits apportioned among Bill and Monica is Rs. 4,680 and Rs. 3,120 respectively. Hence, option A is the correct answer.
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Community Answer
Bill and Monica are partners sharing profits and losses in the ratio o...
Here the interest on capital is already here the interest on capital is already reduced from the profits hence the interest on capitals need not be deducted from the profits while calculating the individual profits of the partners so here the 7800 is should be shared among bill and Monica in 3 is to 2 ratio which means. bill- 7800×3/5=4680and monica - 7800×2/5=3120 therefore option A is the correct answer
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Bill and Monica 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 Bill and Monica is _________a)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 option 'A'. Can you explain this answer?
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Bill and Monica 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 Bill and Monica is _________a)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 option '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 Bill and Monica 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 Bill and Monica is _________a)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 option '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 Bill and Monica 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 Bill and Monica is _________a)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 option 'A'. Can you explain this answer?.
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