QUESTION: 9
Bat and Ball are partners sharing the profits in the ratio of 2:3 with capitals of ₹ 1,20,000 and ₹ 60,000 respectively. On 1st October, 2021, Bat and Ball gave loans of ₹ 2,40,000 and ₹ 1,20,000 respectively to the firm. Bat had allowed the firm to use his property for business for a monthly rent of ₹ 5,000. Loss for the year ended 31st March 2022 before rent and interest amounted to ₹ 9,000. Show distribution of profit/loss.
Answer:
Interest on Bat’s loan = 2,40,000 x 6/100 x 6/12 = ₹ 7,200
Interest on Ball’s loan = 1,20,000 x 6/100 x 6/12 = ₹ 3,600
Rent on Bat Property = 5,000 x 12 = ₹ 60,000
Distributable Loss = 9,000 + 7,200 + 3,600 + 60,000 = ₹ 79,800
Bat Share in Loss = 79,800 x 2/5 = ₹ 31,920
Ball Share in Loss = 79,800 x 3/5 = ₹ 47,880
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Hey! Would you mind providing video solutions? Thanks.
may be in forthcoming months but not with confirmation.