Working Notes:
1. Calculation of Interest on Capital
Interest on A's Capital = 50,000 x \(\frac{10}{100}\) = Rs 5,000
Interest on B's Capital = 50,000 x \(\frac{10}{100}\) = Rs 5,000
Interest on C's Capital = 1,00,000 x \(\frac{10}{100}\) = Rs 10,000
2. Calculation of Profit Share of each Partner
Profits available for Distribution = 1,72,000 − 20,000 − 12,000
= Rs 1,40,000
(i) Distribution of first Rs 20,000 in the Capital Ratio i.e. 1:1:2
A's Profit Share = 20,000 x \(\frac 14\) = Rs 5,000
B's Profit Share = 20,000 x \(\frac 14\) = Rs 5,000
C's Profit Share = 20,000 x \(\frac 24\) = Rs 10,000
(ii) Distribution of Next Rs 30,000 in the ratio of 5:3:2
A's Profit Share = 30,000 x \(\frac 5{10}\) = Rs 15,000
B's Profit Share = 30,000 x \(\frac 3{10}\) = Rs 9,000
C's Profit Share = 30,000 x \(\frac 2{10}\) = Rs 6,000
(iii) Remaining Profit available for distribution = Rs 1,40,000 − 20,000 − 30,000 = Rs 90,000
This profit of Rs 90,000 is to be shared equally by the partners.
A, B and C each will get = 90,000 x \(\frac 13\) = Rs 30,000
Therefore,
Total Profit Share of A = 5,000 + 15,000 + 30,000 = Rs 50,000
Total Profit Share of B = 5,000 + 9,000 + 30,000 = Rs 44,000
Total Profit Share of C = 10,000 + 6,000 + 30,000 = Rs 46,000