Question : Arti and Bharti are partners with a profit-sharing ratio of 2:1 and capitals of Rs 5,00,000 and Rs 4,00,000, respectively. They are allowed 8% per annum interest on capital and are charged 10% per annum interest on their drawings. Their drawings during the year were Arti 80,000 and Bharti 60,000.
Arti's share of net profit as per the profit and loss appropriation account amounted to Rs 1,00,000. The net profit of the firm before any appropriations was
Option 1: Rs 2,08,000
Option 2: Rs 2,15,000
Option 3: Rs 1,79,000
Option 4: Rs 2,20,000
Correct Answer: Rs 2,15,000
Solution :
Answer =
Rs 2,15,000
A's share of net profit=1,00,000.
Total profit=$1,00,000 \times \frac{3}{\text {2}}$=1,50,000.
| Profit as per profit and loss appropriation | 1,50,000 |
| (+) Int on capital | 72,000 |
| A=40,000 | |
| B=32,000 | 222000 |
| (-) Int on drawings | (7000) |
| A=4000 | |
| B=3000 | |
| 2,15,000 |
Hence, the correct option is 2.
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