Question

Omkar and Shiva were partners in a firm. Omkar was entitled to a salary of \rupee20,000 p.a. while Shiva was entitled to a salary of \rupee50,000 p.a. Net profit for the year ended 31\textsuperscript{st March, 2023, after charging salaries of Omkar and Shiva, was \rupee5,60,000. The total amount credited to Omkar's capital account will be:}

• A. \rupee2,45,000
• B. \rupee2,65,000
• C. \rupee3,15,000
• D. \rupee3,00,000

Hint:

When calculating the total credited amount, consider both the share of profits and any salary or other entitlements already accounted for.

Answer 1

The Correct Option is D

The total net profit before salaries: \[ \text{Net profit before salaries} = \rupee5,60,000 + \rupee20,000 + \rupee50,000 = \rupee6,30,000. \] Omkar and Shiva share the profit equally (assuming equal sharing unless stated otherwise): \[ \text{Profit share of Omkar} = \rupee6,30,000 \times \frac{1}{2} = \rupee3,15,000. \] After deducting Omkar's salary of \rupee20,000 (already included in his capital account): \[ \text{Amount credited to Omkar’s capital account} = \rupee3,15,000 - \rupee20,000 = \rupee3,00,000. \] Thus, the total amount credited to Omkar's capital account is \rupee3,00,000.