Question

X and y contribute rs 8, 00, 000 and rs 4, 00, 000 respectively as capital on which they agree to allow interest @6% p.A. They are to share profits in the ratio of 3:2 profit ( before interest ) for the year is rs 60, 000 . Show the relevant account to allocate interest on capital (i) if the partnership deed is silent about the treatment of interest on capital and ( ii

Answer 1

X contributes to buy 8200 rupees 400 respectively the capital of an Empire interesting 6 per annum therefore the share profit in the ratio of 3 is to 2 profit before interest I get aggressive assistant new pattern needs and silent about treatment and interest in the capital to the fear that people are not 2400 400 equals to 20 is dump and Dumper interest per month