Receipts Payment Account

Step 1: Calculate Normal Profits Step 2: Calculate Super Profits Step 3: Calculate Goodwill

Step 1: Distribute profit as per the profit-sharing ratio:
The total profit available is Rs.1,10,000. Distribute the profit among Mahi, Ruhi, and Ginni in the ratio : Step 2: Calculate Ginni’s guaranteed amount and shortfall:
Ginni is guaranteed a profit of Rs.50,000. Her allocated share is Rs.10,000, so the shortfall is: Step 3: Adjust Mahi’s share for the guarantee:
The shortfall of Rs.40,000 is borne by Mahi. Adjusting Mahi’s share: Conclusion:
Mahi’s share in the profit of the firm after giving the guaranteed amount to Ginni is .

Hitesh withdrew Rs.9,000 on 1 superscript{st} November, 2022. Interest on drawings for 5 months (November to March):

The total annual drawings are: Step 1: Calculate the average period:
For quarterly drawings made at the end of each quarter, the average period is: Step 2: Calculate interest on drawings:
The formula for interest on drawings is: Substitute the values: Simplify: Conclusion:
The interest to be charged on Ruchika’s drawings is .