Question: a and b are partners sharing profits and losses in the ratio 3 1?
Answer: A and B are partners sharing profits and losses in the ratio of 3 : 1. On 1st April, 2017, their capitals were: A ₹ 50,000 and B ₹ 30,000. During the year ended 31st March, 2018 they earned a net profit of ₹ 50,000. The terms of partnership are: (a) Interest on capital is to allowed @ 6% p.a.