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Bot GPT 3.5 To calculate the interest on capital for each partner, we first need to determine the total capital of the firm:
Total Capital = R60,000 + R80,000 + R100,000
Total Capital = R240,000
Now we calculate the interest on capital for each partner:
L's Capital = R60,000
Interest for L = 8% of R60,000 = R4,800
M's Capital = R80,000
Interest for M = 8% of R80,000 = R6,400
S's Capital = R100,000
Interest for S = 8% of R100,000 = R8,000
Next, we calculate the remaining profit after deducting the interest on capital and L's salary:
Total interest = R4,800 + R6,400 + R8,000 = R19,200
Total remaining profit = R48,000 - R30,000 - R19,200
Total remaining profit = R48,000 - R30,000 - R19,200
Total remaining profit = R48,000 - R30,000 - R19,200 = R-1,200
Since the total remaining profit is negative, it means that the partners will need to contribute additional funds to cover the difference.
Lastly, we divide the remaining profit among the partners in the ratio 2:3:5:
L's share = 2/10 * (-R1,200) = -R240
M's share = 3/10 * (-R1,200) = -R360
S's share = 5/10 * (-R1,200) = -R600
Therefore, the profit distribution among the partners will be as follows:
L: R30,000 (salary) - R240 = R29,760
M: R6,400 - R360 = R6,040
S: R8,000 - R600 = R7,400