Q30. X Y and Z for partner doing an electronlc goods business In Uttarakhand after the account
partnership was drawn up and closed. It was discovered that interest on capital has been allowed at t
rate of 6% per annum for the year ended 31st March 2019 and 2020, although there is no provision
Interest on capital in partnership deeds, on the other hand x and y are entitled to a salary of rupees 35
and rupees 4000 per quartor respectively, which has not been taken into consideration, their fixed cap
accounts were rupees 400000, rupees 360000 and rupees 240000 respectively, during the last 2 year ti
had chair the profit and losses as follows:
Year ended
ratio
2018 - 19
3:2:1
2019-20
5:3:2
pass necessary adjustment entry for the above adjustment in the books of the firm on 1st April 2
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Answer:
1. Calculation of interest on capital on :
x's Capital =Rs. 9,000 (i.e., Rs. 2,00,000 × 6/10 ×9/12),Y's capital =Rs. (i.e., Rs. 1,00,000 × 6/100× 9/12),
Z's Capital =Rs. 4,500 (i.e., Rs. 1,00,000×6/1009/12) .
2. (i) Profit after interest on capital =RS. 1,38,000 -Rs. 18,00=Rs.1,20,000
Profit os Rs. 1,20,000 will be distributed between X,Yand Z in the ratio 3:2:1 i.e., X's ahare of profit =Rs. 60,000 ,Y 's share of profit = Rs. 40,000 and Z's share of profit =Rs. 20,000
(ii) z's share of profit =RS. 20,000 ,However ,due to guarantee Z has to get minimum Rs. 27,000 * (i.e., RS. 36,000 ×9/12 ) of profit by X, X's share of profit will be Rs. 53,000 (i.e., Rs. 60,000 -Rs. 7,000 ) and Z's share =Rs. 20,000 +rs. 7,00=Rs, 27,000.
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