Question:
Reema, Meesha and Shikha were partners in a partnership firm sharing profits and losses in the ratio of 8 : 7 : 5. On 1st October, 2023, Reema advanced a loan of \(₹ 5,00,000\) to the firm. There is no partnership deed. The firm's profit for the year ended 31st March, 2024 before charging interest on Reema's loan amounted to \(₹ 2,15,000\). The amount of profit credited to Shikha’s capital account was:
Reema, Meesha and Shikha were partners in a partnership firm sharing profits and losses in the ratio of 8 : 7 : 5. On 1st October, 2023, Reema advanced a loan of \(₹ 5,00,000\) to the firm. There is no partnership deed. The firm's profit for the year ended 31st March, 2024 before charging interest on Reema's loan amounted to \(₹ 2,15,000\). The amount of profit credited to Shikha’s capital account was:
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If there's no deed, use 6% p.a. interest on loan and distribute remaining profits in equal or agreed ratio.
Updated On: Jul 7, 2025
- ₹ 80,000
- ₹ 70,000
- ₹ 50,000
- ₹ 42,500
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The Correct Option is D
Solution and Explanation
As there is no partnership deed, interest is payable @6% p.a. on loan as per Indian Partnership Act.
Loan advanced = ₹ 5,00,000
Period = 6 months (October to March)
Interest = ₹ 5,00,000 × 6% × 6/12 = ₹ 15,000
Profit after charging interest = ₹ 2,15,000 – ₹ 15,000 = ₹ 2,00,000
Shikha’s share = \( \frac{5}{20} \times 2,00,000 = ₹ 50,000 \) Final Answer: ₹ 50,000
Loan advanced = ₹ 5,00,000
Period = 6 months (October to March)
Interest = ₹ 5,00,000 × 6% × 6/12 = ₹ 15,000
Profit after charging interest = ₹ 2,15,000 – ₹ 15,000 = ₹ 2,00,000
Shikha’s share = \( \frac{5}{20} \times 2,00,000 = ₹ 50,000 \) Final Answer: ₹ 50,000
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