7 :- Bat and Ball are partners sharing the profits in the ratio of 2 : 3 with capitals of Rs 1,20,000 and Rs 60,000 respectively. On 1st October 2024, Bat and Ball gave loans of Rs 2,40,000 and Rs 1,20,000 respectively to the firm. Bat had allowed the firm to use his property for business for a monthly rent of Rs 5,000. Loss for the year ended 31st March 2025 before rent and interest amounted to Rs 9,000. Show distribution of profit/Loss.
Solution:- Interest payable to Bat = 240,000 x 6/12 x 6/100 = Rs 7,200
Interest payable to Ball = 120,000 x 6/12 x 6/100 = Rs 3,600
Rent payable to Bat = 5,000 x 12 = Rs 60,000
Distributable loss = loss for the year + interest payable to Bat and Ball + rent payable to bat
= 9,000 + 10,800 + 60,000
= Rs 79,800
Bat’s share in loss = 79,800 x 2/5 = Rs 31,920
Ball’s share in loss = 79,800 x 3/15 = Rs 47,880