Question : A, B and C are partners, sharing profits in the ratio 5:3:2 with fixed capital of Rs.80,000, Rs.60,000 and Rs.20,000 respectively. Partners are entitled to interest on their capital @ 10% p.a. During the year firm earned a profit of Rs.11,200. The amount of interest on capital payable to A, B and C will be:
Option 1: Rs.4,000, Rs.3,000, Rs.2,000
Option 2: Rs.5,600, Rs.4,200, Rs.1,400
Option 3: Rs.8.000, Rs.6,000, Rs.2,000
Option 4: Rs.1,400, Rs.4,200, Rs.5,600
Correct Answer: Rs.5,600, Rs.4,200, Rs.1,400
Solution : Interest on capital: A = Rs.80,000 X 10% = Rs.8,000 B = Rs.60,000 X 10% = Rs.6,000 C = Rs.20,000 X 10% = Rs.2,000 Total Appropriation = Rs.16,000 Profit = Rs.11,200 Appropriation > Profit Ratio = 8,000 : 6,000 : 2,000 = 4:3:1. Interest on capital: A = Rs.11,200 X 4/8 = Rs.5,600 B = Rs.11,200 X 3/8 = Rs.4,200 C = Rs.11,200 X 1/8 = Rs.1,400 Hence, the correct option is 2.
Question : A and B are equal partners with capitals of Rs.2,00,000 and Rs.1,00,000 respectively. As per deed, they are allowed an interest @ 8% p.a. on capital. During the year, the firm earned a profit of Rs.12,000. Interest on capital allowed to A and B will be:
Option 1: Rs.16,000 and Rs.8.000 respectively
Option 2: Rs.8,000 and Rs.4,000 respectively
Option 3: Nil
Option 4: Rs.6,000 each
Question : X and Y are partners with capitals of Rs 3,00,000 and 2,50,000, respectively. They are entitled to interest on capital @ 6% p.a. The Firm earned a profit of Rs 55,000 after charging interest on capital. If the manager is entitled to 10% of net profit before charging his commission, the manager's commission will be
Option 1: Rs 3,200
Option 2: Rs 5,500
Option 3: Rs 4,000
Option 4: Rs 8,800
Question : X and Y are partners with capitals of Rs 3,00,000 and 2,50,000, respectively. They are entitled to interest on capital @ 6% p.a. The Firm earned a profit of Rs 55,000 after charging interest on capital. If the manager is entitled to 10% of net profit after charging his commission, the manager's commission will be
Option 1: Rs 8,000
Option 2: Rs 8,800
Option 3: Rs 3,200
Option 4: Rs 4,000
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