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X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.
- a)Profit of Rs. 6,000 will be distributed equally with no interest on either Capital.
- b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.
- c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.
- d)None of the above.
Correct answer is option 'A'. Can you explain this answer?
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X, Y and Z are partners in a firm. At the time of division of profit f...
's capital and salary were Rs. 60,000. X claimed that he should be given one-third of the profit as he had invested one-third of the capital. Y claimed that he should be given half of the profit as he had worked the hardest. Z claimed that he should be given one-fourth of the profit as he had invested one-fourth of the capital and had also contributed to the management of the firm. After much discussion, it was agreed that X would be given Rs. 15,000, Y would be given Rs. 25,000 and Z would be given Rs. 10,000.
To solve this problem, we can first calculate the total capital invested by the three partners. Let the total capital be C.
X has invested one-third of the capital, so his investment is C/3.
Y's investment can be calculated by subtracting X and Z's investments from the total capital:
Y's investment = C - (C/3) - (C/4) = 5C/12.
Z has invested one-fourth of the capital, so his investment is C/4.
We can then set up three equations based on the profit shares agreed upon:
C/3 = 15,000
5C/12 = 25,000
C/4 = 10,000
Solving for C, we get C = Rs. 1,20,000.
We can then calculate each partner's share of the profit:
X's share = (Rs. 60,000 - salary) * (C/3) / C
= (Rs. 60,000 - salary) / 3
Y's share = (Rs. 60,000 - salary) * (5C/12) / C
= (Rs. 60,000 - salary) * 5 / 12
Z's share = (Rs. 60,000 - salary) * (C/4) / C
= (Rs. 60,000 - salary) / 4
We know that X's share is Rs. 15,000, Y's share is Rs. 25,000 and Z's share is Rs. 10,000. Substituting these values and solving for salary, we get:
(Rs. 60,000 - salary) / 3 = 15,000
(Rs. 60,000 - salary) * 5 / 12 = 25,000
(Rs. 60,000 - salary) / 4 = 10,000
Solving for salary, we get salary = Rs. 15,000.
Therefore, X will get Rs. 20,000 (Rs. 15,000 profit share + Rs. 5,000 salary), Y will get Rs. 40,000 (Rs. 25,000 profit share + Rs. 15,000 salary) and Z will get Rs. 25,000 (Rs. 10,000 profit share + Rs. 15,000 salary).
To solve this problem, we can first calculate the total capital invested by the three partners. Let the total capital be C.
X has invested one-third of the capital, so his investment is C/3.
Y's investment can be calculated by subtracting X and Z's investments from the total capital:
Y's investment = C - (C/3) - (C/4) = 5C/12.
Z has invested one-fourth of the capital, so his investment is C/4.
We can then set up three equations based on the profit shares agreed upon:
C/3 = 15,000
5C/12 = 25,000
C/4 = 10,000
Solving for C, we get C = Rs. 1,20,000.
We can then calculate each partner's share of the profit:
X's share = (Rs. 60,000 - salary) * (C/3) / C
= (Rs. 60,000 - salary) / 3
Y's share = (Rs. 60,000 - salary) * (5C/12) / C
= (Rs. 60,000 - salary) * 5 / 12
Z's share = (Rs. 60,000 - salary) * (C/4) / C
= (Rs. 60,000 - salary) / 4
We know that X's share is Rs. 15,000, Y's share is Rs. 25,000 and Z's share is Rs. 10,000. Substituting these values and solving for salary, we get:
(Rs. 60,000 - salary) / 3 = 15,000
(Rs. 60,000 - salary) * 5 / 12 = 25,000
(Rs. 60,000 - salary) / 4 = 10,000
Solving for salary, we get salary = Rs. 15,000.
Therefore, X will get Rs. 20,000 (Rs. 15,000 profit share + Rs. 5,000 salary), Y will get Rs. 40,000 (Rs. 25,000 profit share + Rs. 15,000 salary) and Z will get Rs. 25,000 (Rs. 10,000 profit share + Rs. 15,000 salary).
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X, Y and Z are partners in a firm. At the time of division of profit f...
Option a) is correct as there is no partnership deed between 3 partners although interest on capital should not be decided only by one partner , it should be decided with consent of other partners
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X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profit of Rs. 6,000 will be distributed equally with no interest on either Capital.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the above.Correct answer is option 'A'. Can you explain this answer?
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X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profit of Rs. 6,000 will be distributed equally with no interest on either Capital.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the above.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 X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profit of Rs. 6,000 will be distributed equally with no interest on either Capital.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the above.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 X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profit of Rs. 6,000 will be distributed equally with no interest on either Capital.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the above.Correct answer is option 'A'. Can you explain this answer?.
X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profit of Rs. 6,000 will be distributed equally with no interest on either Capital.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the above.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 X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profit of Rs. 6,000 will be distributed equally with no interest on either Capital.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the above.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 X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profit of Rs. 6,000 will be distributed equally with no interest on either Capital.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the above.Correct answer is option 'A'. Can you explain this answer?.
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X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profit of Rs. 6,000 will be distributed equally with no interest on either Capital.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the above.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profit of Rs. 6,000 will be distributed equally with no interest on either Capital.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the above.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profit of Rs. 6,000 will be distributed equally with no interest on either Capital.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the above.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s capital was Rs. 6,000 and X wanted interest on capital @ 20% as his capital contributions was Rs. 1,00,000 as compared to that of Y and Z which was Rs. 75,000 and Rs. 50,000 respectively.a)Profit of Rs. 6,000 will be distributed equally with no interest on either Capital.b)X will get the interest of Rs. 20,000 and the loss of Rs. 14,000 will be shared equally.c)All the partners will get interest on capital and the loss of Rs. 39,000 will be shared equally.d)None of the above.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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