Question

X and Y are partners sharing profits and losses in the ratio of 2:3 with capitals of ₹ 2,00,000 and ₹ 1,00,000 respectively. The Partnership Deed provides for interest on capital @ 6% p.a. and the trading profits for the year are ₹ 15,000. State how much amount of interest on capital will be allowed to each partner.​

Answer 1

Answer:

x:y - 2:3

x's capital = 2,00,000

y's capital = 1,00,000

interest of x's capital = 2,00,000×6/100= 12,000

interest of y's capital = 1,00,000×6/100 = 6,000

total interest = 18,000

available profit = 15,000

now the profit is insufficient to pay the interest also there is no charge against profit in question is given so the ratio at which the interest on capital is to be given is

12,000:6, 000

2:1

so divide the available profit in 2:1

x's share = 15,000×2/3 = 10,000

y's share = 15,000×1/3 = 5,000

profit and loss appropriation AC..... Dr 15,000

to X's capital AC 10,000

to Y's capital AC 5,000