Question

9. X and Y started a partnership business with capital investment of * 50,00,000 and 3 30,00,000
respectively. X and Y worked as manager and accountant and were paid respectively 10% and 15%
of yearly profit as salaries. In addition, each was paid interest at 5% per annum on the capitals put
in by them. The remaining profits are to be divided equally between them. If at the end of the year
X gets * 1,60,000 more than what Y gets , how much does each get​

Answer 1

Step-by-step explanation:

ANSWER

1. When Capitals are Fixed

Calculation of Opening Capital X Y

Closing Capital 10,00,000 12,50,000

Add:-withdrawal of capital 5,00,000 1,25,000

Less:Additional Capital (2,50,000) (6,25,000)

Opening Capital 12,50,000 7,50,000

Calculation of Interest on Capital X Y

Interest on Opening capital 75,000 45,000

(12,50,000*6%) (7,50,000*6%)

Add:Interest on additional capital 13,750 18,750

(2,50,000*6%*11/12) (6,25,000*6%*6/12)

Less:Interest on capital withdrawn (15000) (6875)

[5,00,000*6%*6/12] [1,25,000*6%*11/12]

Total 73750 56875

2. When capitals are Fluctuating :

Calculation of Opening Capital X Y

Closing capital 10,00,000 12,50,000

Add:withdrawal of capital 5,00,000 1,25,000

Drawings 2,50,000 1,25,000

Less:additional capital (2,50,000) (6,25,000)

Less:profits (3,00,000) (2,00,000)

Total 12,00,000 6,75,000

Calculation of interest on capital X Y

Interest on opening capital 72,000 40,500

(12,00,000*6%) (6,75,000*6%)

Add interest on add capital 13,750 18,750

(2,50,000*6%*11/12) (6,25,000*6%*6/12)

Less: Interest on withdrawal ( 15,000) (6875)

(5,00,000*6%*6/12) (1,25,000*6%*11/12)

Total 70750 52,375