Question

Omkar and Shiva were partners in a firm. Omkar was entitled to a salary of ₹ 20,000 p.a. while Shiva was entitled to a salary of ₹ 50,000 p.a. Net profit for the year ended 31^st March, 2023 after charging salary of Omkar and Shiva was ₹ 5,60,000. The total amount credited to Omkar's capital account will be ______.

Options

• ₹ 2,45,000

• ₹ 2,65,000

• ₹ 3,15,000

• ₹ 3,00,000

Answer 1

Omkar and Shiva were partners in a firm. Omkar was entitled to a salary of ₹ 20,000 p.a. while Shiva was entitled to a salary of ₹ 50,000 p.a. Net profit for the year ended 31^st March, 2023 after charging salary of Omkar and Shiva was ₹ 5,60,000. The total amount credited to Omkar's capital account will be ₹ 3,00,000.

Explanation:

1. Net Profit after Salaries: ₹ 5,60,000 (already after deducting salaries).
2. Add Omkar's Salary: ₹ 20,000.
   Adjusted profit = ₹ 5,60,000 + ₹ 20,000 = ₹ 5,80,000.
3. Profit Sharing: Assuming equal sharing or the specified ratio, Omkar’s share in profits is credited along with his salary.
4. Omkar's Total: 
   Salary: ₹ 20,000.
   Share in Profit: ₹ 2,80,000 (if sharing equally).

Total credited to Omkar’s account = ₹ 3,00,000.