Question -
Answer -
| | | | Interest on Loan | + | Salary | = | Total |
| 2014 | 59,000 | + | 1,800 | + | 9,000 | = | 69,800 |
| 2015 | 62,000 | + | 1,800 | + | 9,000 | = | 72,800 |
| 2016 | (4,000) | + | 1,800 | + | 9,000 | = | 6,800 |
| 2017 | 78,000 | + | 1,800 | + | 9,000 | = | 88,800 |
| | 1,95,000 | + | 7,200 | + | 36,000 | = | 2,38,200 |
Chandan receivedas Manager = Interest on Loan + Salary = 7,200 + 36,000 = ₹ 43,200
Total Profit of 4years before interest on Chandan’s Loan and Salary = 2, 38,200
Intereston Chandan’s Capital for 4 years = {20,000 × (6/100) =1,200}
= 1,200 × 4 = ₹ 4,800
Profit after intereston all partners’ Capital
= Total Profit of fouryears before interest on Chandan’s loan and Salary – Intereston Chandan’s Capital for four years
= 2, 38,200 –4,800
= ₹ 2, 33,400
Wrong Distribution –Distribution of 4 years
Profitwhen Chandan as a Manager
| | Kavita {1,95,000 × (3/5)} | = | 1,17,000 |
| | Pradeep {1,95,000 × (2/5)} | = | 78,000 |
| Chandan received as manager = Interest on Loan + Salary |
| | = 7,200 + 36,000 | = | 43,200 |
| | | | 2,38,200 |
| | | | | |
Right Distribution –Division of Profit when Chandan as Partner
| Chandan Share of Profit {2,33,400 × (1/6)} | 38,900 |
| Interest on Capital | 4,800 |
| | 43,700 |
| Kavita’s Share of Profit {(2,33,400 – 38,900) ×(3/5)} = | 1,16,700 |
| Pradeep’s share of Profit {(2,33,400 – 38,900) × (2/5)} = | 77,800 |
Adjustmentof Profit
| | Kavita | | Pradeep | | Chandan | = | Total |
| Distribution of profit when Chandan as partner | 1,16,700 | | 77,800 | | 43,700 | = | 2,38,200 |
| Less: Distribution of profit when Chandan as manager | (1,17,000) | | (78,000) | | (43,200) | = | (2,38,200) |
| Right distribution of ₹ 4,140 | (300) | | (200) | | (500) | = | NIL |
| Date | Particulars | L.F. | Debit Amount ₹ | Credit Amount ₹ |
| | Kavita’s Capital A/c | Dr. | | 300 | |
| | Pradeep’s Capital A/c | Dr. | | 200 | |
| | To Chandan’s Capital A/c | | | | 500 |
| | (Adjustment of profit made) | | | | |
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