What is meant by Profitability Ratios? Post category:Accountancy Reading time:1 mins read SOLUTION A Profitability Ratio is a measure of profitability. Profitability ratios are calculated to analyse the earning capacity of the business. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhat is meant by ‘Profitability of Business’? Next PostName two ratios to assess the profitability of a business in terms of sales. You Might Also Like What is deferred tax liability? September 30, 2022 A, B and C are partners sharing profits and losses in the ratio of A 1/2, B 3/10, C 1/5 after providing for interest @ 5% on their respective capitals. A Rs. 50,000; B Rs. 30,000 and C Rs. 20,000 and allowing B and C a salary of Rs. 5,000 each per annum. During the year ended 31st March, 2019, A has drawn Rs. 10,000 and B and C in addition to their salaries have drawn Rs. 2,500 and Rs. 1,000 respectively. Profit and Loss Account for the year ended 31st March, 2019 showed a net profit of Rs. 45,000. On 1st April, 2018, the balances in the Current Accounts of the partners were A (Cr.) Rs. 4,500; B (Cr.) Rs. 1,500 and C (Cr.) Rs. 1,000. Interest is not charged on Drawings or Current Account balances. Show Partners’ Capital and Current Accounts as at 31st March, 2019 after division of profits in accordance with the partnership agreement. July 21, 2022 How are mutual relations of partners governed in the absence of Partnership Deed? September 23, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
A, B and C are partners sharing profits and losses in the ratio of A 1/2, B 3/10, C 1/5 after providing for interest @ 5% on their respective capitals. A Rs. 50,000; B Rs. 30,000 and C Rs. 20,000 and allowing B and C a salary of Rs. 5,000 each per annum. During the year ended 31st March, 2019, A has drawn Rs. 10,000 and B and C in addition to their salaries have drawn Rs. 2,500 and Rs. 1,000 respectively. Profit and Loss Account for the year ended 31st March, 2019 showed a net profit of Rs. 45,000. On 1st April, 2018, the balances in the Current Accounts of the partners were A (Cr.) Rs. 4,500; B (Cr.) Rs. 1,500 and C (Cr.) Rs. 1,000. Interest is not charged on Drawings or Current Account balances. Show Partners’ Capital and Current Accounts as at 31st March, 2019 after division of profits in accordance with the partnership agreement. July 21, 2022