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Question
X, Y, and Z are partners in a firm. At the time of division of profit for the year, there was a dispute between the partners. profits before interest on partner's capital was 12,000 and Y determined interest @24% p.a. on his loan of 1,60,000. There was no agreement on this point. Calculate the amount payable to X, Y, and Z respectively.
X, Y, and Z are partners in a firm. At the time of division of profit for the year, there was a dispute between the partners. profits before interest on partner's capital was 12,000 and Y determined interest @24% p.a. on his loan of 1,60,000. There was no agreement on this point. Calculate the amount payable to X, Y, and Z respectively.
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Solution
The correct option is B 800 for X, 10400 for Y and 800 for Z
Interest on loan= 1,60,000*6% = Rs 9,600 (In the absence of partnership deed, max interest allowable @6%)
Balance profit after interest on loan= 12,000-9,600 = 2,400
Balance profit to be shared equally.
Profit share after interest on loan = 2400/3=800
X: 800
Y:9600+800=10,400
Z:800
800 for X, 10400 for Y and 800 for Z
Interest on loan= 1,60,000*6% = Rs 9,600 (In the absence of partnership deed, max interest allowable @6%)
Balance profit after interest on loan= 12,000-9,600 = 2,400
Balance profit to be shared equally.
Profit share after interest on loan = 2400/3=800
X: 800
Y:9600+800=10,400
Z:800
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