Target Exam

CUET

Subject

Accountancy Part A

Chapter

Accounting for Partnership

Question:

Anuj and Varun are partners sharing profits equally, with capitals of Rs. 1,00,000 and Rs. 80,000 respectively. Interest on capital is agreed @ 6% p.a. Varun is to be allowed an annual salary of Rs. 10,000. Manager is to be allowed commission Rs. 5,000. Anuj has also given a Loan on April 01, 2024 of Rs. 50,000 to the firm without any agreement. During the year 2024-25, the profit earned was Rs. 42,500. State their share of profit after necessary appropriations.

Options:

Rs. 6,850 each

Rs. 9,850 each

Rs. 16,250 each

Rs. 17,250 each

Correct Answer:

Rs. 6,850 each

Explanation:

The correct answer is Option (1) → 

Rs. 6,850 each