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Read the hypothetical text and answer the following questions. :M, N and O entered into partnership firm on 1st July, 2018 and decided to share profits and losses in the ratio of 3:2:1. M guaranteed that O’s share of profit after charging interest on capitals @ 6% p.a. would not be less than ₹ 36,000 p.a. The capital contributed by M: ₹ 2,00,000, N: ₹ 1,00,000 and O: ₹ 1,00,000 respectively. Profit for the year ended 31st March, 2019 was ₹ 1,38,000.Q1. What is the total amount of interest on capital? a) ₹ 9,000 b) ₹ 12,000 c) ₹ 18,000 d) ₹ 24,000 Q2. What is the distributable amount of profit? a) ₹ 1,00,000 b) ₹ 1,20,000 c) ₹ 1,10,000 d) ₹ 90,000 Q3. What is the share of profit of O? a) ₹ 27,000 b) ₹ 36,000 c) ₹ 18,000 d) ₹ 9,000 Q4. What is deficiency amount to be borne by M? a) ₹ 16,000 b) ₹ 7,000 c) 12,000 d) ₹ 15,000 |
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Answer» Correct option is 1 c) ₹ 18,000 2 b) ₹ 1,20,000 3 a) ₹ 27,000 4 b) ₹ 7,000 |
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