question_answer

A and B are partners in a firm and sharing the profit & loss equally. Their capitals are Rs.5,00,000 and Rs.3,00,000 respectively. Calculate the amount of profit or loss to be distributed among the partner if rent is paid to partner A Rs.10,000 per month and Profit for the year is Rs.1,00,000 after providing rent to partner A. Distribution of Profit/Loss will be as:

A) Loss: A = 10,000 B = 10,000 

B) A= Nil B = Nil

C) Loss: A = 50,000 B = 50000     

D) Profit: A = 50,000 and B = 50,000