# Question 27 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1 Question 27 Chapter 2 of +2-Part-1

27. Money and Rupee are partners sharing profits in the ratio of 2:1. Their capitals were Rs.1,20,000 and Rs. 90,000 respectively.
Show the distribution of profits/losses in each of the following alternative cases:
Case A: Profits are Rs.45,000 and deed is silent as regards interest on capital.
Case B: Profits are Rs.45,000 and deed provides for interest on capital @10% p.a.
Case C: Profits are Rs.16,800 and deed provides for interest on capital @10% p.a.
Case D: Profit is Rs.16,800 and deed provides for interest on capital @10% p.a. even there is a loss.
Case E: Loss is Rs.6,000 and deed provides for interest on capital @10% p.a. even there is a loss.

### The solution of Question 27 Chapter 2 of +2 Part-1: –

Case – A :

Money’s Share in profit 2/3 i.e. Rs.30,000
Rupee’s Share in profit 1/3 i.e. Rs.15,000
Note: No interest on capital will be allowed.

Case – B :

Net profit after interest on Capitals:
Rs.(45,000-12,000-9,000) = Rs.24,000
Money’s Share in profit (2/3 of Rs.24,000) i.e. Rs.16,000
Rupee’s Share in profit (1/3 of Rs.24,000) i.e. 8000

Case – C :

Net profit after interest on Capitals:
Rs.(12,000+9,000-16,800) = Rs.4,200,
Money’s Share of loss on Capital ratio = (Rs.4,200*4/7) i.e. Rs.2,400
Rupee’s Share of loss on Capital ratio = (Rs.4,200*3/7) i.e. Rs.1,800
Money’s Share in profit = Interest on Capital (12,000-2,400) = Rs.9,600
Rupee’s Share in profit = Interest on Capital (9,000-1,800) = Rs.7,200

Case – D :

 Particulars Interest on Capital: -Money 12,000 -Rupee 9,000 21,000 Less: Net Profit 16,800 Net Loss 4,200

Money’s Share of loss =2/3*4,200 i.e. Rs.2,800
Rupee’s Share in loss= 1/3*4,200 i.e. Rs.1,400

Case – E :

 Particulars Interest on Capital: -Money 12,000 -Rupee 9,000 21,000 Less: Net Profit 6,000 Net Loss 27,000

Money’s Share of loss =2/3*27,000 i.e. Rs.18,000
Rupee’s Share in loss= 1/3*27,000 i.e. Rs.9,000