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 salary was given to C for the whole year?

Options:

₹3,000

₹2,000

₹2,500

₹1,500

Correct Answer:

₹3,000

Explanation:

The correct answer is option 1- ₹3,000.

Salary per month = ₹250

Total salary for the whole year = 250 x 12
                                                 = ₹3,000