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A and B share profits in the ratio \(2:1\). A is entitled to an annual salary of ₹24,000. A became a partner on \(1\) July, and the accounting year ends on \(31\) March. How much salary will A receive for that year?

Answer and explanation

Correct answer: ₹18,000

A joined on \(1\) July and the year ends on \(31\) March, so A is entitled for \(9\) months (July to March). Salary for the year \(=\frac{9}{12}\times ₹24,000=₹18,000\).

Related tags

Partnership AccountsAdjustmentsPartner's SalaryTime ProportionProfit Ratio

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