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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...
Solution:
Given, the ratio of Bill and Monica's profit sharing is 3:2 and their initial capital is Rs.80,000 and Rs.50,000 respectively.
Step 1: Calculation of interest on capital
Interest on Bill's capital = (9/100) * 80,000 = Rs. 7,200
Interest on Monica's capital = (9/100) * 50,000 = Rs. 4,500
Step 2: Calculation of total profit earned by the firm
Total profit earned by the firm = Rs. 7,800
Step 3: Calculation of total amount to be distributed
Total amount to be distributed = Total profit earned by the firm - Interest on capital
= 7,800 - (7,200 + 4,500)
= Rs. 1,100
Step 4: Calculation of profit share
Bill's share = (3/5) * 1,100
= Rs. 660
Monica's share = (2/5) * 1,100
= Rs. 440
Step 5: Calculation of total profit share
Bill's total profit share = 7,200 + 660
= Rs. 4,860
Monica's total profit share = 4,500 + 440
= Rs. 3,940
Therefore, the profits apportioned among Bill and Monica is Rs.4,680 and Rs.3,120 respectively. Hence, option (a) is the correct answer.
Given, the ratio of Bill and Monica's profit sharing is 3:2 and their initial capital is Rs.80,000 and Rs.50,000 respectively.
Step 1: Calculation of interest on capital
Interest on Bill's capital = (9/100) * 80,000 = Rs. 7,200
Interest on Monica's capital = (9/100) * 50,000 = Rs. 4,500
Step 2: Calculation of total profit earned by the firm
Total profit earned by the firm = Rs. 7,800
Step 3: Calculation of total amount to be distributed
Total amount to be distributed = Total profit earned by the firm - Interest on capital
= 7,800 - (7,200 + 4,500)
= Rs. 1,100
Step 4: Calculation of profit share
Bill's share = (3/5) * 1,100
= Rs. 660
Monica's share = (2/5) * 1,100
= Rs. 440
Step 5: Calculation of total profit share
Bill's total profit share = 7,200 + 660
= Rs. 4,860
Monica's total profit share = 4,500 + 440
= Rs. 3,940
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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Bill and Monica are partners sharing profits and losses in the ratio o...
Rs.7800 is distributed among the partner in ratio of
3:2.(Bill=4680.and Monica =3120) Interest on capital is not charge because profit of the year is given after allowing interest on capital
3:2.(Bill=4680.and Monica =3120) Interest on capital is not charge because profit of the year is given after allowing interest on capital
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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?
Question Description
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?.
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?.
Solutions 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? in English & in Hindi are available as part of our courses for CA Foundation.
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