A & B are partners started partnership on 1st April, 2021 sharing profit and losses in ratio of 2:3 with capitals of ₹2,00,000 and ₹1,00,000 respectively. After 6 months of partnership both partners gave loan to the firm of A- ₹4,00,000 and B-₹2,00,000. Determine the profit or loss for the year ended 31st March,2022 if profit before interest is ₹15,000?

₹3,000 loss

The correct answer is option 2- ₹3,000 loss.

The partnership deed is silent so Interest on capital is not provided and interest on loan will be provided @ 6% p.a. for 6 months.

So, interest on loan of A = 4,00,000*6/100*6/12
                                       = ₹12,000
Interest on loan of B = 2,00,000*6/12*6/100
                                  = ₹6,000

Total interest on loan is ₹18,000 whereas profit for the year is ₹15,000 means the firm will result in a loss of ₹3,000.