Question

X and Y are partners sharing profits and losses in the ration 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 firm earned Rs.15,600 before allowing any interest on capital. Profits apportioned among X and Y is ___________.

• A. Rs. 9,360 and Rs. 6,240
• B. Rs. 9,600 and Rs. 6,000
• C. Rs. 10,000 and Rs. 5,600
• D. None of these

Answer 1

The correct option is B Rs. 9,600 and Rs. 6,000

Interest on capital = capital x rate

X :-

= 1,60,000 x 9/100

= RS-14,400.

Y:-

= 1,00,000 x 9/100

= RS-9,000.

Apportioned in the ratio of interest to be allowed to the extent of profits available:-

X:-

= 14,400

-------------- x 15,600

23,400

= RS-9,600.

Y:-

= 9,000

------------- x 15,600

23,400

= RS-6,000.