Yadu, Madhu and Vidu are partners, sharing profit and losses in the ratio of 2:2:1. Their fixed capitals on April 01,2018 were:

Yadu ₹5,00,000, Madhu ₹4,00,000 and Vidu is ₹3,50,000.

As per a partnership deed, partners are entitled to interest on capital of @5% p.a. and Yadu has to be paid a salary of ₹2000 per month. The net loss of the firm as per profit and loss account for the year ending March 31, 2019, amounted to ₹75,000. On the basis of the profit and loss appropriation account, Partners' distribution of loss would be:

Yadu ₹30,000, Madhu ₹30,000, Vidu ₹15,000

The correct answer is option 1- Yadu ₹30,000, Madhu ₹30,000, Vidu ₹15,000.

The loss is given as per profit and loss appropriation account which means all adjustments are done before this.

Total loss = ₹75,000 (distributed in 2:2:1)

Yadu's share = 75,000 x 2/5
                    = ₹30,000

Madhu's share = 75,000 x 2/5
                      = ₹30,000

Vidu's share = 75,000 x 1/5
                   = ₹15,000