Read the following hypothetical text and answer the questions.
Suresh and Dinesh were partners in a fast-food corner sharing profits and losses in ratio 3:2. They sold fast food items across the counter and did home delivery too. Their initial fixed capital contribution was ₹1,20,000 and ₹80,000 respectively. At the end of first year their profit was ₹ 1,20,000 before allowing the remuneration of ₹3,000 per quarter to Suresh and ₹2,000 per half year to Dinesh. Such a promising performance for first year was encouraging, therefore, they decided to expand the area of operations. For this purpose, they needed a delivery van, a few Scotties and an additional person to support. Six months into the accounting year they decided to admit Rajesh as a new partner and offered him 20% as a share of profits along with monthly remuneration of ₹ 2,500. Rajesh was asked to introduce ₹1,30,000 for capital and ₹70,000 for premium for goodwill. Besides this Rajesh was required to provide Rs.1,00,000 as loan for two years.
Rajesh readily accepted the offer. The terms of the offer were duly executed and he was admitted as a partner. |
