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Subject to contract between the partners, interest on capital is to be provided out of profits only. In case of insufficient profits (i.e. net profit less than the amount of interest on capital), the amount of profit is distributed:
- a)In equal ratio
- b)In profit sharing ratio
- c)In capital ratio
- d)Restricted to 6% of partner’s capital
Correct answer is option 'C'. Can you explain this answer?
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Subject to contract between the partners, interest on capital is to be...
Capital adequacy ratio. Capital Adequacy Ratio (CAR) is also known as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss and complies with statutory Capital requirements.
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Subject to contract between the partners, interest on capital is to be...
's capital and the remaining profit is distributed in profit sharing ratio.
The correct answer is d) Restricted to 6% of partner's capital and the remaining profit is distributed in profit sharing ratio. This is because, as per the given clause, interest on capital is to be provided out of profits only. In case there are insufficient profits to cover the interest on capital, the partners are entitled to receive only up to 6% interest on their capital. Any remaining profit is then distributed in accordance with the profit sharing ratio agreed upon by the partners. This clause helps to ensure that partners receive a fair return on their investment, while also protecting the overall financial health of the partnership.
The correct answer is d) Restricted to 6% of partner's capital and the remaining profit is distributed in profit sharing ratio. This is because, as per the given clause, interest on capital is to be provided out of profits only. In case there are insufficient profits to cover the interest on capital, the partners are entitled to receive only up to 6% interest on their capital. Any remaining profit is then distributed in accordance with the profit sharing ratio agreed upon by the partners. This clause helps to ensure that partners receive a fair return on their investment, while also protecting the overall financial health of the partnership.
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Subject to contract between the partners, interest on capital is to be provided out of profits only. In case of insufficient profits (i.e. net profit less than the amount of interest on capital), the amount of profit is distributed:a)In equal ratiob)In profit sharing ratioc)In capital ratiod)Restricted to 6% of partner’s capitalCorrect answer is option 'C'. Can you explain this answer?
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Subject to contract between the partners, interest on capital is to be provided out of profits only. In case of insufficient profits (i.e. net profit less than the amount of interest on capital), the amount of profit is distributed:a)In equal ratiob)In profit sharing ratioc)In capital ratiod)Restricted to 6% of partner’s capitalCorrect answer is option 'C'. 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 Subject to contract between the partners, interest on capital is to be provided out of profits only. In case of insufficient profits (i.e. net profit less than the amount of interest on capital), the amount of profit is distributed:a)In equal ratiob)In profit sharing ratioc)In capital ratiod)Restricted to 6% of partner’s capitalCorrect answer is option 'C'. 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 Subject to contract between the partners, interest on capital is to be provided out of profits only. In case of insufficient profits (i.e. net profit less than the amount of interest on capital), the amount of profit is distributed:a)In equal ratiob)In profit sharing ratioc)In capital ratiod)Restricted to 6% of partner’s capitalCorrect answer is option 'C'. Can you explain this answer?.
Subject to contract between the partners, interest on capital is to be provided out of profits only. In case of insufficient profits (i.e. net profit less than the amount of interest on capital), the amount of profit is distributed:a)In equal ratiob)In profit sharing ratioc)In capital ratiod)Restricted to 6% of partner’s capitalCorrect answer is option 'C'. 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 Subject to contract between the partners, interest on capital is to be provided out of profits only. In case of insufficient profits (i.e. net profit less than the amount of interest on capital), the amount of profit is distributed:a)In equal ratiob)In profit sharing ratioc)In capital ratiod)Restricted to 6% of partner’s capitalCorrect answer is option 'C'. 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 Subject to contract between the partners, interest on capital is to be provided out of profits only. In case of insufficient profits (i.e. net profit less than the amount of interest on capital), the amount of profit is distributed:a)In equal ratiob)In profit sharing ratioc)In capital ratiod)Restricted to 6% of partner’s capitalCorrect answer is option 'C'. Can you explain this answer?.
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Subject to contract between the partners, interest on capital is to be provided out of profits only. In case of insufficient profits (i.e. net profit less than the amount of interest on capital), the amount of profit is distributed:a)In equal ratiob)In profit sharing ratioc)In capital ratiod)Restricted to 6% of partner’s capitalCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Subject to contract between the partners, interest on capital is to be provided out of profits only. In case of insufficient profits (i.e. net profit less than the amount of interest on capital), the amount of profit is distributed:a)In equal ratiob)In profit sharing ratioc)In capital ratiod)Restricted to 6% of partner’s capitalCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Subject to contract between the partners, interest on capital is to be provided out of profits only. In case of insufficient profits (i.e. net profit less than the amount of interest on capital), the amount of profit is distributed:a)In equal ratiob)In profit sharing ratioc)In capital ratiod)Restricted to 6% of partner’s capitalCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
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