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A and B share profits in (2:3). At year end A's final share is (₹46000) including salary (₹10000) and interest on capital (₹6000). What was total residual profit?

Answer and explanation

Correct answer: (₹75000)

A's residual profit share is (46000-10000-6000=₹30000). This is (2/5), so total residual profit is (30000\times\frac{5}{2}=₹75000).

Related tags

PartnershipAdjustmentsReverse Profit SharePartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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