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X and Y are partners sharing the profits and losses in the ratio of 2 : 1 with capitals of ₹ 50,000 and ₹ 30,000 respectively. Show the distribution of profits in each of the following alternative cases:

(i) If the partnership deed is silent as to the Interest on Capital and the profits for the year are ₹ 9,000.

(ii) If the partnership deed provides for Interest on Capital @ 6% p.a. and the losses for the year are ₹ 6,000.

(iii) If the partnership deed provides for Interest on Capital @ 6% p.a. and the profits for the year are ₹ 9,000.

(iv) If the partnership deed provides for interest on Capital @ 6% p.a. and the profits for the year are ₹ 3,000.

(v) If the partnership deed provides for Interest on Capital @ 6% p.a. even if it involves the firm in loss and the profits for the year are ₹ 3,000.

[Ans. Case (i) Profit X ₹ 6,000, Y ₹ 3,000; Case (ii) Loss X ₹ 4,000, Y ₹ 2,000; Case (iii) Profit X ₹ 2,800, Y ₹ 1,400; Case (iv) Interest on Capital X ₹ 1,875, Y ₹ 1,125; Case (v) Loss X ₹ 1,200, Y ₹ 600.]

Anurag Pathak Answered question May 25, 2024