X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute among the partners. Profits before interest on partners capital and loan was Rs. 6,000 and.Y determined interest @ 24% p.a. on his loan of Rs. 80,000. There was no agreement on this point. Calculate the amount payable to X, Y and Z respectively.

Rs. 2,000 to each partner.

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Loss of Rs. 4,400 for X and Z and Y will take home Rs. 14,800.

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Rs. 400 for X, Rs. 5,200 for Y and Rs. 400 for Z.

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Rs. 2;400 to each partner.

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Solution

The correct option is C Rs. 400 for X, Rs. 5,200 for Y and Rs. 400 for Z.
In the absence of partnership deed, no interest on capital is provided. Interest on loan is calculated at 6%. Interest On loan at 6% will be 4800 Rs. Remaining 1200 Rs. will be distributed equally among partners 400 Rs. to each partner. Share of X and Z will be 400 Rs. and share of Y will be 400+ 4800(interest on loan) = 5200 Rs.

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