Question

X Y and Z are partners in a firm. Their capitals on 1st April, 2014 were as follows:
** 60.000, Y 250,000 and Z 40,000. On 1st Oct., 2014 X gave 'a loan of 10,000 to the firm
The partnership deed contained the following clauses:
(i) Interest on capital @ 5% p.a.
di Interest on loan @ 6% p.a.
(iii) Salary for Z @ 1,000 per month
(iv) Y to get rent of 500 p.m. for the use of premises.
Net profit of the firm for the year ended 31st March, 2015 (before the above adjustments) was 30,300
Prepare Profit and Loss Appropriation Account assuming capital to be fixed​

Answer 1

Answer:

On 1st October, 2017, X and Y granted loans of ₹ 80,000 and ₹ 40,000 respectively to the firm. ... The Partnership Deed provides that interest on capital is to be allowed @ 10% p.a. Z is to be allowed a salary ...