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Experts Can you pls check my aswer and tellme whats wrong ?

X and Y are partners sharing profits and losses in the ratio of 2: 3 with capitals ₹ 2,00,000 and ₹ 3,00,000 respectively. On 1st October, 2018, X and Y gave loans of ₹ 80,000 and ₹ 40,000 respectively to the firm. Show distribution of profits/losses for the year ended 31st March, 2019 in each of the following alternative cases:
Case 3: If the profits before interest for the year amounted to ₹ 5,000.

Dear student,
You have done a small calculation mistake only when you divided 1400 by 5 the answer will be 280 and not 320.
Correct solution is as follow:-
(Figures in Rs.)


Regards.

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View Full Answer
It should be deducted from the profit on credit side and then divide the profit among the partners
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Dear student,
Interest on loan is a charge against profit for firm thus it is debited to profit and loss account and not under profit and loss appropriation account so the interest on loan for half yearly would be deducted from the profit given and the balance is distributed as follows:

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