Asha and Lata are partners with capitals of ₹6,00,000 and ₹3,00,000 respectively, on which they are entitled to interest at 10% p.a. They divide profits in the ratio of 2 : 1. They take Sudha, manager of the business for the past 15 years, as a partner in the firm with 1/4th share of profits and guaranteed that her share of profits will not be less than ₹2,00,000. Sudha brought ₹3,00,000 as her capital. Any deficiency in Sudha’s minimum guaranteed profit will be borne by Asha and Lata in the ratio of 4 : 1. Profits at the end of the year before allowing interest on capitals amounted to ₹7,20,000.

Calculate Sudha’s deficiency in profits:

[2 marks]

₹1,50,000

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₹50,000

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₹2,00,000

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₹1,20,500

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Solution

The correct option is B ₹50,000

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Q. Asha and Lata are partners with capitals of ₹6,00,000 and ₹3,00,000 respectively, on which they are entitled to interest at 10% p.a. They divide profits in the ratio of 2 : 1. They take Sudha, manager of the business for the past 15 years, as a partner in the firm with 1/4th share of profits and guaranteed that her share of profits will not be less than ₹2,00,000. Sudha brought ₹3,00,000 as her capital. Any deficiency in Sudha’s minimum guaranteed profit will be borne by Asha and Lata in the ratio of 4 : 1. Profits at the end of the year before allowing interest on capitals amounted to ₹7,20,000.

Calculate total interest on capital given to all partners:

[2 marks]

Asha and Lata are partners with Capitals of Rs 5,00,000 and Rs 4,00,000 respectively, on which they are entitled to interest at 10% p.a. They divide profits in the ratio of 2:1. They take Sudha, Manager of the business for the past 15 years, as partner in the firm with $\frac{1}{4}$ th share of profits and guaranteed that her share of profits will not be less than Rs 2,00,000. Sudha brought Rs 3,00,000 as her capital. Any excess profits received by Sudha over her $\frac{1}{4}$ th share will be borne by Asha and Lata in the ratio of 4:1. Profits at the end of the year before allowing interest on capitals amounted to Rs 7,20,000. Distribute the profits. What value has been fulfilled by Asha and Lata?