X and Y are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 1,60,000 and Rs. 1,00,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year, the firm earned Rs. 15,600 before allowing any interest on capital. Profits apportioned among X and Y is :

7,100 and 2,400

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10,000 and 5,680

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9,600 and 6,000

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9,360 and 6,240

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Solution

The correct option is C
9,600 and 6,000

Interest on capital for X = 1,60,000 * 9% = 14,400
Interest on capital for Y = 1,00,000 * 9% = 9,000

Total interest on capital = 23,400

Since the total interest is more than the profits available, interest is provided only to the extent of profits shared in their capital ratio of 8:5

For X = 15,600 * 8/13 = 9,600
For Y = 15,600 * 5/13 = 6,000

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