Question

X and Y are partners. X's capital is Rs 10,000, Y's capital is Rs 6,000. Interest is payable at 6% p.a. Y is entitled to a salary of Rs 300 per month. Profits for current year before charging any interest and salary to Mr. Y is Rs 8,000. Divide the profit between X and Y.

Answer 1

Interest on capital of X = Rs 600 and of Y = Rs 360, Salary of $Y=300\times 12=\text{Rs}3,600$

Divisible Profit = $8,000-600-360-3,600$

= Rs 3,440

Which is to be distributed among X and Y in equal ratio i.e, Rs 1,720 each.