Question 06 Chapter 2 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 06 Chapter 2 of +2-Part-1

6. (No Partnership Deed) Mahesh and Ramesh are partners with capitals of Rs. 50,000 and Rs.60,000 respectively. On 1st January 2013, Mahesh gives a loan of Rs.10,000 and Ramesh introduced Rs.20,000 as additional capital. Profit for the year ending 31st March 2013 was Rs.15,200. There is no partnership deed. Both Mahesh and Ramesh expect interest @ 10% p.a. on the loan and additional capital advanced by them. Show how the profits would be divided? Give reasons.

The solution of Question 06 Chapter 2 of +2 Part-1: - 

Distribution of Profits of the firm:

Particulars	Mahesh	Ramesh
Interest on Loan (3 months) 10,000x6/100x3/12	150	-
Net Profit (15,200-150)	7,525	7,525
	7,675	7,525

Note: 
1. No interest will be allowed on partners’ capital.
2. Interest on loan and additional capital will be allowed as per mutual agreement.
3. Balance of profits are distributed equally.
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