X,Y AND Z ARE PARTNERS IN A FIRM AT THE TIME OF DIVISION OF PROFIT FOR THE YEAR THERE WAS DISPUTE BETWEEN THE PARTNERS.PROFITS BEFORE INTEREST ON PARTNERS'S CAPITAL WAS 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 AND Z?
A) 2000 TO EACH PARTNER
B) LOSS OF 4400 FOR X AND Z AND Y WILL TAKE HOME 14800
C) 400 FOR X, 5200 FOR Y AND 400 FOR Z
Answer (C) is correct.
as there was no agreement , interest on loan will be given 6% of 80000 = 4800/-
Remaining profit 1200/- will be divided equally to all partners ( 400/- Each)
To Y = 4800 + 400 = 5200
as there was no agreement , interest on loan will be given 6% of 80000 = 4800/-
Remaining profit 1200/- will be divided equally to all partners ( 400/- Each)
To Y = 4800 + 400 = 5200