X and Y are partner sharing profit and losses in the ratio of 3:2 . Their capitals are Rs 200000 and Rs 100000 respectively. Interest on capital is allowed @ 8% p.a. Firm earned a profit of Rs 15000 for the year ended 31st March 2019 . Calculate Interest on capital ?
Answers
Answered by
29
Explanation:
interest on capital
Partner X
8% Of 2,00,000 = 16,000
Partner Y
8% of 1,00,000 = 8,000
Answered by
0
The appropriations are to be made in the ratio of interest and salary is 5:3.
Explanation:
Using Profit and loss appropriation account
particulars to Interest on capital X= 50,000
particular to Salary Y= 30,000
interest on X's capital = 20,00,000*8%=1,60,000
Salary to Y= 8000*12 = 96,000
Total = 2,56,000
Net profits available is less than the appropriations to be made.
Therefore, the appropriations are to be made in the ratio of interest and salary is 5:3.
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