Yadu, Madhu and Vidu are partners, sharing profit and losses in the ratio of . Their fixed capitals on April 01, 2018 were: Yadu , Madhu and Vidu .As per the partnership deed, partners are entitled to interest on capital and Yadu has to be paid a salary of per month. The net loss of the firm as per profit and loss account for the year ending March 31, 2019, amounted to . On the basis of the profit and loss appropriation account, Partners' distribution of loss would be:
- AYadu , Madhu , Vidu
- BYadu , Madhu , Vidu
- CYadu , Madhu , Vidu
- DYadu , Madhu , Vidu
Solution & Step-by-step Explanation
In the event of a net loss, appropriations of profits such as Interest on Capital and Partner's Salary are not allowed or provided (since they are distributions of profits, not charges against profits), unless explicitly stated to be treated as a charge.Therefore, the actual net loss of is directly distributed among the partners in their profit and loss sharing ratio of .Yadu's Share of Loss:
Madhu's Share of Loss:
Vidu's Share of Loss:
Madhu's Share of Loss:
Vidu's Share of Loss: