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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?
Verified Answer
X, Y and Z are partners in a firm. At the time of division of profit f...
The correct answer to the given problem is option a. Let's analyze why:
Calculation
- Interest Calculation:
X's interest on capital @ 20% on Rs. 1,00,000 = Rs. 20,000
However, the scenario specifies no interest on capital. - Profit Distribution:
Total profit available = Rs. 6,000
Since the profits are to be distributed equally among X, Y, and Z, each partner gets:
Share of each partner = Rs. 6,000 / 3 = Rs. 2,000
Option Analysis:
- Option b: This suggests that X gets an interest of Rs. 20,000, creating a total loss of Rs. 14,000 after considering the original profit. This distribution is not only unfeasible but also doesn't account for equal sharing of the remainder.
- Option c: This implies all partners receive interest on their capital, leading to an even larger unaccounted loss of Rs. 39,000, which doesn't reconcile with the available profit or an equitable distribution.
- Option d: This is a null option, typically incorrect if one of the other scenarios can be logically validated, which is the case here.
Option a is the correct choice because it involves a simple, equitable split of the available profits with no interest applied, sticking to the premise of the problem statement and the figures provided.
Most Upvoted Answer
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 2025 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 2025 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 2025 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 2025 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?.
Solutions 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? in English & in Hindi are available as part of our courses for CA Foundation.
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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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