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Question 24 Chapter 2 of Class 12 Part – 1 Usha Publication
24. (Interest as a charge) A and B have a capital of Rs.30,000 and Rs.40,000 respectively and they shared profit in capital ratio. As per agreement interest on capital as a charge even if it involves losses. The firm sustain a loss of Rs. 3,500 and the rate of interest is 10% p.a. Show distribution of Loss/Profit.
We are providing a solution of Question 24 Chapter 2 of Class 12 Part - 1 Usha Publication in two formats. one is in Video format and another is in article format. Check out both formats as follows:
The video consists solution of questions numbers 18 to 28 Chapter No. 2 class 12 of Usha publication. To check the direct solution of question no. 24 from the following video by using time stamps of the video.
Calculation of net profit
| Particulars |
B | ||
|---|---|---|---|
| Loss of firm | 3,500 | ||
| Less: Interest on Capital @ 10% - A | (3,000) | ||
| Interest on Capital @ 10% - B | (4,000) | ||
| Net Loss | (10,500) | ||
Calculation of distribution of profit
| Particulars |
A | B | ||
|---|---|---|---|---|
| Net Profit of Rs.10,500 being distributed in 3:1 ratio | (4500) | (6,000) | ||
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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