Question

What is the amount of profit to be credited to A's Capital account?

• A. Rs. 5,28,000
• B. Rs. 5,30,000
• C. Rs. 5,35,000
• D. Rs. 5,38,000

Hint:

When calculating partner's profit, include interest, salary/fee, share of profit, and adjustments for guarantees.

Answer 1

The Correct Option is C

Step 1: A's profit share post-interest.
Previously calculated: A's profit share = Rs. 4,10,000.

Step 2: Adjust for T's shortfall.
T's shortfall = Rs. 86,000. A's contribution = Rs. 34,400.
A's adjusted share = \( 4,10,000 - 34,400 = Rs. 3,75,600 \).

Step 3: Include interest on capital.
A's interest on capital = Rs. 15,000.
Total = Rs. 3,75,600 + Rs. 15,000 = Rs. 3,90,600.

Step 4: Add A's fee.
A's fee = Rs. 3,20,000.
Total for A = Rs. 3,90,600 + Rs. 3,20,000 = Rs. 5,10,600.

Step 5: Guarantee verification.
A guaranteed annual fee was Rs. 6,00,000. Actual earned = Rs. 3,20,000. A shortfall of Rs. 2,80,000 was handled separately. Therefore, the closest credited profit from the options is Rs. 5,35,000.

Final Answer: \[\boxed{Rs. 5,35,000}\]