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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, 2017, Bat and Ball granted lonas 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. The loss for the year ended 31st March, 2018 before rent and interest amounted to ₹ 9,000. Show distribution of profit/loss. |
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Answer» ution of PROFIT and loss is given below. EXPLANATION:The ratio of profit SHARING between the partners is given as 2:3. Interest based on Bat and Ball’s loan :Interest amount on Bat’s loan Interest Amount on Ball’s loan YEARLY rent paid:Monthly Rent = Rs. 5000So yearly rent will be Distribution of loss:Loss that will be shared by the partners will be calculated as: Bat’s SHARE of lossBall’s share of loss |
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