A, B and C, and D are partners in a firm sharing profits in the ratio of 4 : 3 : 2 :1. The firm earned a net profit of ₹ 1,80,000 for the year ended 31st March 2023

A, B and C, and D are partners in a firm sharing profits in the ratio of 4 : 3 : 2 :1. The firm earned a net profit of ₹ 1,80,000 for the year ended 31st March 2023. As per the Partnership Deed, partners will get a commission @ 20% of the profits after charging such commission which they will share as 2 : 3 2 : 3.

You are required to show appropriation of profits among the partners.

[Ans: Commission payable to the partners = 20/120 ✕ ₹ 1,80,000 = ₹ 30,000 which will be shared as A – ₹ 6,000; B – ₹ 9,000; C – ₹ 6,000 and D – ₹ 9,000. Share of Profits: A – ₹ 60,000; B – ₹ 45,000; C – ₹ 30,000 and D – ₹ 15,000.]