Read the following information to answer.
Arun and Ram are partners in a restaurant business sharing profits and losses in capital ratio. Their fixed capital from the beginning of the firm was ₹200000 and ₹150000 respectively.
The profit for the year ended 31 March 2022 before the appropriation of Salary and Interest on Capital was ₹2,20,000. Ram is allowed a salary of ₹ 2,000 per quarter and interest on capital @ 10% p.a.
Due to the further expansion of the business, they decided to enter Sanjeev as a new partner for 1/5 share in profits. It was agreed that Sanjeev will bring ₹100000 as capital and ₹50,000 as his share of Goodwill. It was decided that he will give ₹100000 as loan to the firm for 3 years.

The amount of distributed profits of both the partner's will be:

₹177000

Profit before appropriations                                                          = ₹220000
Less: Interest on capital
         Arun = 200000 x 10/100 = 20000
         Ram= 150000 x 10/100 = 15000                                          = 35000
Less: salary to Ram (2000 x4)                                                       = 8000
Distributed profit =                                                                        = ₹177000