Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

Read the following passage and answer the following question.

A, B and C are partners in a firm sharing profits and losses in ratio of 2:2:1. Their capital accounts stood at ₹30,000, ₹15,000 and ₹15,000 respectively at the starting of business on 1st April,2021. As per the oral agreement between partners, C was allowed salary of ₹250 per month and interest on capitals of all partners was allowed at the rate of 5% p.a. Net profit earned for the year is ₹18,000 which was distributed between partners equally, ignoring the interest and salary clause.

What amount of profit had been credited to B?

Options:

₹6,000

₹3,600

₹7,200

₹10,000

Correct Answer:

₹6,000

Explanation:

The correct answer is option 1- ₹6,000.

Profit for the year = ₹18,000

But profit is distributed equally so B's share is 18,000*1/3
                                                      = ₹6,000