PRC-1 · Chapter 10 · Question 10 of 100
A, B and C are in partnership sharing profits 2:2:1. B is allowed a salary of Rs. 10,000 and C is allowed a salary of Rs. 15,000. The net profit for the year is Rs. 100,000. What is B's total share of the profit (including salary)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 40,000
Explanation
Total profit = 100k. Less salaries (10k + 15k) = 25k. Residual profit = 75k. B's share of residual = 75k x 2/5 = 30k. B's total = 30k (share) + 10k (salary) = Rs. 40,000.
More Preparation of Financial Statements MCQs
- Q12A business received an advance of Rs. 1.8 million against a total annual maintenance contract of Rs. 3.6 million. The contract runs for 9…
- Q13How is the 'Allowance for doubtful debts' account classified in the ledger?
- Q14The proprietor of a business withdraws goods costing Rs. 4,000 for personal use. No entry was made. What adjusting entry is required?
- Q15A business has Trade Receivables of Rs. 100 million. A customer owing Rs. 1 million has gone bankrupt and must be written off. The…
- Q16In a partnership, Partner A and Partner B share profits equally. There is no interest on capital, but Partner B is entitled to a monthly…