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Nandini, Shreya and Ujjwal are partners in a firm. At the time of the division of profit for the year, there was a dispute between the partners. Profit before interest on partner’s capital was Rs. 6,000 and Shreya determined interest @24% Per Annum on her loan of Rs. 80,000. There was no agreement on this point. Calculate the amount payable to Nandini, Shreya and Ujjwal respectively

38. Nandini, Shreya and Ujjwal are partners in a firm. At the time of the division of profit for the year, there was a dispute between the partners. Profit before interest on partner’s capital was Rs. 6,000 and Shreya determined interest @24% Per Annum on her loan of Rs. 80,000. There was no agreement on this point. Calculate the amount payable to Nandini, Shreya and Ujjwal respectively.

1. 400 for Nandini; Rs. 5,200 for Shreya and Rs. 400 for Ujjwal
2. 2000 to each partner
3. Loss of Rs. 4,400 for Nandini and Ujjwal; Shreya will take Rs. 14,800
4. None of the above

Answer: A) 400 for Nandini; Rs. 5,200 for Shreya and Rs. 400 for Ujjwal

Explanation:

Since Shreya has determined interest @24% Per Annum on her loan of Rs. 80,000, although there is no written agreement on it still the amount payable would be Rs. 400 for Nandini; Rs. 5,200 for Shreya and Rs. 400 for Ujjwal.