A, B and C were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 4. Their partnership deed provided for the following: |
(i) Interest on capital @5% p. a. |
(ii) Interest on drawing @ 12% p. a. |
(iii) B was allowed a commission of 10% of net profit after charging Interest on capital |
(iv) C is entitled to a commission of 10% of net profit after charging interest on capital and B commission. |
Their capitals were A: Rs.5,00,000; B: Rs.8,00,000 and C: Rs.4,00,000. On 1st April, 2021 C advance a loan of Rs.1,00,000 to the firm. The net profit of the firm for the year ended 31st March, 2021 before interest on c's loan was Rs.4,50,000. |
Drawings during the year are as follows; |
A withdrew Rs.5,000 at the end of each month, |
B withdrew Rs.10,000 at the end of each quarter and |
C withdrew Rs.40,000 at the end of each half year. |
C Commission will be |
A) 32,310
B) 35,900
C) 44,400
D) 32,636
Correct Answer: A
Solution :
32,310You need to login to perform this action.
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