21
Dear Student
Regards
| Calculation of Interest on Capital (for 6 months) | ||
| A | (3,00,000 x 5% x 6/12) | 7,500 |
| B | (2,00,000 x 5% x 6/12) | 5,000 |
| C | (1,00,000 x 5% x 6/12) | 2,500 |
| Total | 15,000 | |
| Distribution of Profit before adjusting deficiency | ||
| Total Profit | 120,000 | |
| Less : Interest on Capital | 15,000 | |
| Remaining profit for Distribution | 105,000 | |
| A : | (1,05,000 x 3/6) | 52,500 |
| B : | (1,05,000 x 2/6) | 35,000 |
| C : | (1,05,000 x 1/6) | 17,500 |
| C's Share guaranteed by A | 30,000 | |
| Deficiency | (30,000 - 17,500) | 12,500 |
| Deficiency borne by A | 12,500 | |
| Distribution of profits after adjusting Deficiency | ||
| A : | (52,500 - 12,500) | 40,000 |
| B : | 35,000 | |
| C : | (17,500 + 12,500) | 30,000 |
Regards