Akhil and Bimal are partners sharing profits in the ratio of 3 : 2. Akhil gave a loan to the firm of ₹ 1,00,000 on 1st October 2022

Akhil and Bimal are partners sharing profits in the ratio of 3 : 2. Akhil gave a loan to the firm of ₹ 1,00,000 on 1st October 2022. On the same date, the firm gave a loan to Bimal of ₹ 1,00,000. They do not have an agreement as to interest.

Akhil had also given his personal property for the firm’s godown at a monthly rent of ₹ 5,000.

The firm earns a profit of ₹ 1,03,000 (before the above adjustments) for the year ended 31st March 2023. Show the distribution of profit for the year.

[Ans: ₹ 40,000 [(₹ 1,03,000 – ₹ 3,000) (Interest on Loan by Akhil) – ₹ 60,000 (rent) will be distributed in the ratio of 3 : 2. Akhil – ₹ 24,000; Bimal – ₹ 16,000.]

[Hint: In the absence of agreement, Akhil will get Interest @ 6% p.a. on the loan given by him. Interest will not be charged on the loan to Bimal by the firm. Also, rent will be paid to Akhil as per the agreement.