Question

X and Y and Z are partners sharing p and L in the ratio of 5 is to 3 is to 2 their capitals are 94066 thousand sixteen thousand respectively creditors are 1 lakh cash release after payment of creditor is 96000 amount paid to X will be what

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Answer 1

Answer:

Calculation of profit before Z's salary and Interest on loan

Year 2014-15 2015-16 2016-17 2017-18

profit/loss 590000 626000 (40000) 780000

Add:-Salary 90000 90000 90000 90000

Add:-Interest on Z's loan 18000 18000 18000 18000

Profit before Z's salary

and Interest on loan 698000 734000 68000 888000

Total profit for 4 years = 2388000

Calculation of interest on capital = 200000*6% = 12000

Interest on capital for 4 years= 12000*4=48000

Profit after Z's interest on capital = 2388000-48000

= 2340000

Z's share of profit= 2340000/6=390000

Z's share as partner= 390000+48000=438000

Less Z's share as manager= salary+interest on loan=360000+72000

= (432000)

Z to get from X and Y = 6000

The following journal entries need to be passed:-

X's capital A/c Dr.(6000*3/5) 3600

Y's capital A/c Dr.(6000*2/5) 2400

To Z 's capital A/c 6000

(Being Z paid by X and Y in 3:2 ratio)

Z's loan A/c Dr. 200000

To Z's capital A/c 200000

(Being Z's loan transferred to Z' capital A/c)

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