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 were Rs.12,000 and Z demanded a minimum profit of Rs. 10,000 as his financial position was not good. However, there was no written agreement on this profit. Calculate the amount payable to X, Y and Z.

Other partners will pay Z the minimum profit and will suffer loss equally.

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Other partners will pay Z the minimum profit and will suffer loss in capital ratio.

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X, Y will take Rs. 1,000 each and Z will take Rs. 10,000.

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Rs. 4,000 to each of the partners.

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Solution

The correct option is D Rs. 4,000 to each of the partners.
When there is no written agreement in regard to how the profits are to be distributed equally among the partners. So, Z's demand of minimum profit won't be entertained. All the partners will get Profit of RS-4,000 equally.

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The correct option is D Rs. 4,000 to each of the partners.When there is no written agreement in regard to how the profits are to be distributed equally among the partners. So, Z's demand of minimum profit won't be entertained. All the partners will get Profit of RS-4,000 equally.

The correct option is D Rs. 4,000 to each of the partners.
When there is no written agreement in regard to how the profits are to be distributed equally among the partners. So, Z's demand of minimum profit won't be entertained. All the partners will get Profit of RS-4,000 equally.