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.

Anurag Pathak Changed status to publish April 10, 2024
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