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Accounts doubt-partnership

04 February 2013

X,Y,&Z are partners in a firm .At the time of division of profit for the year there was dipute araises between the partners.profits before interest on partners's loan was rs 6000 and Y determined interest @ 24 % p.a. on his loan of 80000.there was no agreement on this point.calculate the amount payable to X,Y & Z respectively.

pls ans and explain

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8 Replies

(Guest)

80000 X 24% = 19200. is the Interest which Y must have taken & arrived at Profit of 6000/-, So total Profit Before Interest would be 25200. Now what you do is calculate 12% on 80000/- i.e 9600/- Now deduct 9600/- from 25200/- i.e 15600/- Amt of profit after Interest available to partners for distribution ( assuming there is No adjustment given for Income Tax )

I hope now it must have become very clear with you.

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Khushboo Somani (Business) (90 Points)
Replied 05 February 2013

.If there is no agreement regarding the rate of interest, it is taken as 6% p.a. hence interest on loan = 80000*6%= 4800 and profit after interest = 6000-4800 = 1200

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Natesh Navada (Chartered Accountant) (149 Points)
Replied 05 February 2013

As per Partnership Act, when there is no mention about interest to be paid to partners, such interest cannot exceed 6%. Accordingly Y can demand interest only to the extent of 6%.

After payment of 6% interest, the profit is to be shared by all the partners at the agreed profit sharing ratio.

Natesh

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Rama krishnan (CPT) (56 Points)
Replied 05 February 2013

Originally posted by : khushboo
	.If there is no agreement regarding the rate of interest, it is taken as 6% p.a. hence interest on loan = 80000*6%= 4800 and profit after interest = 6000-4800 = 1200

calculate the amount payable to X,Y & Z respectively. ?

Khushboo Somani (Business) (90 Points)
Replied 05 February 2013

Rs. 1200 is divided equally among the three partners I.e. rs. 400 each

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Rama krishnan (CPT) (56 Points)
Replied 05 February 2013

Originally posted by : khushboo
	Rs. 1200 is divided equally among the three partners I.e. rs. 400 each

but the options given in the book is

A)RS 2000 to each partne

b) Loss of Rs 4400 for x and Z and Rs 400 for Y

c)Rs 400 -x , 5200-Y ,&400 -Z

d) Rs 2400 to each partner

which is right and how?

Khushboo Somani (Business) (90 Points)
Replied 05 February 2013

ans is c. x=400, y=4800+400=5200 , z= 400

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Rama krishnan (CPT) (56 Points)
Replied 05 February 2013

P sent out goods costing Rs 45000 to Y at cost +33.33.1/10th of the goods were lost in transit.2/3rd of the goods recceived are sold at 20 % above invoice price. the amount of sale value will be?