Question

X,Y and Z entered into partnership on April 1st,2013 to share profits & losses in the ratio 4:3:3

Answer 1

Explanation:

X, Y and Z entered into partnership on 1st October, 2017 to share profits and losses in the ratio of 4 : 3 : 3. X, personally guaranteed that Z’s share of profit after charging interest on capital @ 10% p.a. would not be less then Rs. 80,000 in any year. The capital contributions were: X Rs. 3,00,000, Y Rs. 2,00,000 and Z Rs. 1,50,000. The profit for the year ended 31st March, 2018 amounted to Rs. 1,60,000. Prepare Profit and Loss Appropriation Account......