54:- Neeraj and Surya are partners sharing profits and losses in the ratio of 2:1. Their capitals are Rs 4,00,000 and Rs 2,00,000 respectively. Neeraj is entitled to interest on capital @12% p.a. and Surya is entitled to salary of Rs 6,000 per month. Profit before providing for interest on capital and partner’s salary for the year ended 31st March, 2025 was Rs 50,000. Show the distribution of profits.
Solution:- Calculation of Neeraj’s interest on capital
Neeraj = 4,00,000 x 12% = Rs 48,000
Calculation of Salary to Surya
Salary = 6,000 x 12 = Rs 72,000
Since, available profits are less than the appropriations, profits will be distributed to them in the ratio of amounts due to them i.e, 2:3.
Distribution of available profits
Neeraj’s share of profit = 50,000 x 2/5 = Rs 20,000
Surya’s share = 50,000 x 3/5 = Rs 30,000