Varsha and Monica are partners sharing profit and losses in the ratio of 3 : 2 having the capital of ₹…
The profit shares are ₹ 4,680 for Varsha and ₹ 3,120 for Monica. The ₹ 7,800 is already after interest on capital, so it is divided in the ratio 3 : 2: ₹ 7,800 × 3/5 = ₹…
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Varsha and Monica are partners sharing profit and losses in the ratio of 3 : 2 having the capital of ₹ 80,000 and ₹ 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profit. During the year firm earned ₹ 7,800 after allowing interest on capital. Profit apportioned among Varsha and Monica is :
Answer and explanation
Correct answer A
The profit shares are ₹ 4,680 for Varsha and ₹ 3,120 for Monica. The ₹ 7,800 is already after interest on capital, so it is divided in the ratio 3 : 2: ₹ 7,800 × 3/5 = ₹ 4,680 and ₹ 7,800 × 2/5 = ₹ 3,120.
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Maharashtra and Goa SET (MH SET)