Question

x and y are entered into partnership sharing the profit and losses in the ratio of 3:2.xbeing a non working partner contributed 500000 as his capital on 1st january 2015 .y being a working partner agreed to work for the frim .the partnership deed provides for interest on capital @8℅ and salary to every working partner @2000p.m. net profit before providing for interest on capital and partners salary for the year 2015 was 120000.show the distribution of profit

Answer 1

Explanation:

1 ) Intrest on capital for x is calculated (8%) = 40,000

2) salary for y is calculated ( 2000 * 12 ) = 24,000

3) profit transfer to capitals A/Cs

( 1,20,000 - 40,000 + 24,000 ) = 56,000

x's capital 56,000 * 3/5 = 33,600

y's capital 56,000* 2/5 = 22,400

HOPE IT HELPED YOU .