A, B and C are partners sharing the profits and losses in the ratio of 2 : 3 : 5. On 1st July, 2023, A and B granted loans of ₹ 2,00,000 and ₹ 1,00,000 respectively to the firm

A, B and C are partners sharing the profits and losses in the ratio of 2 : 3 : 5. On 1st July, 2023, A and B granted loans of ₹ 2,00,000 and ₹ 1,00,000 respectively to the firm. Show the distribution of profits/losses for the year ended 31st March, 2024, in the following cases:

Case (a) If the profits before interest for the year amounted to ₹ 7,500.

Case (b) If the loss before interest for the year amounted to ₹ 7,500.

[Ans.]

Case (a) Share of Loss A ₹ 1,200; B ₹ 1,800 and C ₹ 3,000;

Case (b) Share of Loss A ₹ 4,200; B ₹ 6,300 and C ₹ 10,500;]