QUESTION: 10
Akhil and Bimal are partners sharing profits in the ratio of 3:2. Akhil gave a loan to the firm of ₹ 1,00,000 on 1st October 2021. On the same date, the firm gave a loan to Bimal of ₹ 1,00,000. They do not have an agreement as to interest.
Akhil had also given his personal property for the firm’s godown at a monthly rent of ₹ 5,000.
The firm earns a profit of ₹ 1,03,000 (before the above adjustments) for the year ended 31st March 2022. Show the distribution of profit for the year.
Answer:
Interest on Akhil’s Loan = 1,00,000 x 6/100 x 6/12 = ₹ 3,000
Rent on Akhil’s Property = 5,000 x 12 = ₹ 60,000
Distributable Profit = ₹ 1,03,000 – ₹ 60,000 – ₹ 3,000 = ₹ 40,000
Akhil’s share in Profit = 40,000 x 3/5 = ₹ 24,000
Bimal’s Share in Profit = 40,000 x 2/5 = ₹ 16,000
NOTE: Interest on a loan by the firm to Bimal is not allowed as there is no agreement.
Pingback: T.S. Grewal's Accountancy Solutions 12th Class - WebComm.in
Hey! Would you mind providing video solutions? Thanks.
may be in forthcoming months but not with confirmation.