Question

Vanya and Aanya were partners in a firm sharing profit and losses in the ratio of 3:2. Their capitals were \rupee 5,00,000 and \rupee 1,00,000 respectively. Vanya was entitled to interest on capital @ 8\% p.a. and Aanya was entitled to salary @ \rupee 5,000 per month. The net profit before any appropriation was \rupee 1,75,000. Vanya's share in divisible profit will be:

• A. \rupee 45,000
• B. \rupee 30,000
• C. \rupee 37,500
• D. \rupee 40,000

Hint:

Always deduct appropriations such as interest on capital and salary before dividing the remaining profit among partners in their profit-sharing ratio.

Answer 1

The Correct Option is A

Step 1: Calculate appropriations:
Interest on Vanya's capital: \[ \rupee 5,00,000 \times 8\% = \rupee 40,000. \] Salary to Aanya: \[ \rupee 5,000 \times 12 = \rupee 60,000. \] Total appropriations: \[ \rupee 40,000 + \rupee 60,000 = \rupee 1,00,000. \] Step 2: Calculate divisible profit:
Net profit after appropriations: \[ \rupee 1,75,000 - \rupee 1,00,000 = \rupee 75,000. \] Step 3: Calculate Vanya's share in divisible profit:
Vanya's share in the remaining profit: \[ \rupee 75,000 \times \frac{3}{5} = \rupee 45,000. \] Conclusion:
Vanya's share in the divisible profit is \( \rupee 45,000 \).