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Divakshi, Palak and Unnati were partners in a firm with capitals of Rs. 50,000 ; Rs. 40,000 and Rs. 30,000 respectively carrying on business in the partnership firm. Their firm’s reported profit for the year was Rs. 80,000. As per the provision in the Indian Partnership Act, 1932. Find out the share of each partner in the profit after taking into account that no interest has been provided on an advance by Divakshi of Rs. 20,000 in addition to her capital contribution

37. Divakshi, Palak and Unnati were partners in a firm with capitals of Rs. 50,000 ; Rs. 40,000 and Rs. 30,000 respectively carrying on business in the partnership firm. Their firm’s reported profit for the year was Rs. 80,000. As per the provision in the Indian Partnership Act, 1932. Find out the share of each partner in the profit after taking into account that no interest has been provided on an advance by Divakshi of Rs. 20,000 in addition to her capital contribution.

1. 26,667 to each partner
2. 26,647 for Palak and Unnati and Rs. 27,466 for Divakshi
3. 33,333 for Divakshi ; Rs. 26,667 for Palak and Rs. 20,000 for Unnati
4. 30,000 for each partner

Answer: B) 26,647 for Palak and Unnati and Rs. 27,466 for Divakshi

Explanation:

Since Divakshi has provided Rs.20,000 in addition to her capital contribution the profit-sharing in the firm according to the Indian Partnership Act, 1932 would be Rs. 26,647 for Palak and Unnati and Rs. 27,466 for Divakshi.