A, B, C and D are partners in a firm sharing profits in the ratio of 4:3:2:1

34 :- A, B, C, and D are partners in a firm sharing profits in the ratio of 4 : 3 : 2 :1. The firm earned a net profit of Rs 1,80,000 for the year ended 31st March, 2025. As per the Partnership Deed, partners will get a commission @ 20% of the profits after charging such commission which they will share as 2 : 3: 2 : 3. You are required to show appropriation of profits among the partners.

Solution:- Total commission of partners = 1,80,000 x 20/120 = Rs 30,000
A’s commission = 30,000 x 2/10 = Rs 6,000
B’s commission = 30,000 x 3/10 = Rs 9,000
C’s commission = 30,000 x 2/10 = Rs 6,000
D’s commission = 30,000 x 3/10 = Rs 9,000

Distribution of divisible profits among partners
Divisible profits = 1,80,000 – 30,000 = Rs 1,50,000
A’s share of profit = 1,50,000 x 4/10 = Rs 60,000
B’s share of profit = 1,50,000 x 3/10 = Rs 45,000
C’s share of profit = 1,50,000 x 2/10 = Rs 30,000
D’s share of profit = 1,50,000 x 1/10 = Rs 15,000