A and B are partners. Their Capitals on 1st April, 2020 capitals of Rs.5,00,000 and Rs.3,00,000 respectively. On August 1, 2020 they introduced further capitals of Rs.50,000 and Rs.40,000 respectively. B withdrew Rs.15,000 from his capital on March 1, 2021. The profit for the year ended 31st March 2021 was Rs.4,00,000 before allowing interest on partner's loan. |
According to partnership agreement: |
(i) A has given a Loan of Rs.1,50,000 to the firm on 1st July, 2020. |
(ii) Interest on capital to be allowed @ 12% p.a. |
(iii) Interest on drawings @ 6% p.a. Drawings were A Rs.60,000 and B Rs.40,000. |
(iv) B is to be allowed a Commission (Charge) of 2% on sales. Sales for the year were Rs.30,00,000. |
(v) Profit is to be distributed in the following manner |
(a) Upto 1,00,000: Equally. |
(b) Above 1,00,000: in the ratio of 3:2 |
Interest on capital of B will be: |
A) 64,500
B) 64,000
C) 39,050
D) 38,050
Correct Answer: B
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