Practicing Success
Yadu, Madhu and Vidu are partners in a partnership firm sharing profits and losses in the ratio of 2:2:1. Their fixed capitals were- Yadu ₹5,00,000, Madhu ₹4,00,000 and Vidhu ₹3,50,000. As per the partnership deed, partners are entitled to interest on capital @ 5% p.a., and Yadu has to be paid a salary of ₹2,000 per month while Vidu would be receiving a commission of ₹18,000. Net loss of the firm as per profit and loss appropriation account for the year ended amounted to ₹75,000 on the basis of above information. Vidu will get a guaranteed profit of ₹20,000. How much deficiency is borne by other partners? |
Yadu- ₹17,000, Madhu-₹18,000 Yadu- ₹10,000, Madhu ₹10,000 No deficiency is borne by partners Yadu- 17,500, Madhu-17,500 |
Yadu- 17,500, Madhu-17,500 |
The correct answer is option4- Yadu- 17,500, Madhu-17,500. 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) Guaranteed profit of Vidu will,be ₹20,000 and loss is there, so total deficiency that will be borne by other partners is (20,000 +15,000) i.e., ₹35,000 which will be borne by both partners in their ratio that is equally. So, each partner will bear ₹17,500 because profit sharing ratio between partners is 2:2:1. |