question_answer

Answer the following Question from the above information (Accounts close date 31.03.2022) 63 to 67 :

A, B and C were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 4. Their partnership deed provided for the following:

(i) Interest on capital @5% p. a.

(ii) Interest on drawing @ 12% p. a.

(iii) B was allowed a commission of 10% of net profit after charging Interest on capital

(iv) C is entitled to a commission of 10% of net profit after charging interest on capital and B commission.

Their capitals were A: Rs.5,00,000; B: Rs.8,00,000 and C: Rs.4,00,000. On 1st April, 2021 C advance a loan of Rs.1,00,000 to the firm. The net profit of the firm for the year ended 31st March, 2021 before interest on c's loan was Rs.4,50,000.

Drawings during the year are as follows;

A withdrew Rs.5,000 at the end of each month,

B withdrew Rs.10,000 at the end of each quarter and

C withdrew Rs.40,000 at the end of each half year.

C Commission will be

A) 32,310

B) 35,900

C) 44,400

D) 32,636