Question

Vanya and Aanya were partners in a firm sharing profit and losses in the ratio of \(3:2\). Their capitals were \rupee5,00,000 and \rupee1,00,000, respectively. Vanya was entitled to interest on capital @ 8\% p.a., and Aanya was entitled to salary @ \rupee5,000 per month. The net profit before any appropriation was \rupee1,75,000. Vanya's share in divisible profit will be:

• A. \rupee45,000
• B. \rupee30,000
• C. \rupee37,500
• D. \rupee40,000

Hint:

When dividing profits, always calculate appropriations like interest on capital and salaries before applying the profit-sharing ratio.

Answer 1

The Correct Option is A

The appropriations are calculated as follows: 1. Interest on capital for Vanya: \[ \text{Interest on capital} = \rupee5,00,000 \times 8\% = \rupee40,000. \] 2. Salary for Aanya: \[ \text{Salary for 12 months} = \rupee5,000 \times 12 = \rupee60,000. \] 3. Remaining profit after appropriations: \[ \rupee1,75,000 - \rupee40,000 - \rupee60,000 = \rupee75,000. \] 4. Profit sharing ratio: \[ \text{Vanya's share} = \rupee75,000 \times \frac{3}{5} = \rupee45,000. \] Thus, Vanya's share in divisible profit is \rupee45,000. \vspace{0.5cm} \hrule \vspace{0.5cm}