Question

Y and Z are partners with fixed capitals of Rs. 1,50,000; Rs. 1,20,000 and Rs. 1,00,000 respectively. The balance of Current accounts on 1 April 2019 were X Rs. 8,000; Y Rs. 3,000 and Z Rs. 2,000 (Dr.). X has advanced Rs.20,000 on 1 October 2019. The partnership deed provided for the following: Interest on capital @ 5% p.a. Interest on drawings @ 6% p.a. Each partner withdrew Rs.10,000 on 1 October 2019. Rs. 30,000 is to be transferred to General Reserve. Profit and Loss to be shared in the proportion of 3:2:1 upto Rs. 60,000 and above 60,000 equally. Net profit of the firm before above adjustment was 1,25,400. Prepare Profit and Loss Appropriation Account. [Ans. X share Rs. 35,734; Y share Rs. 25,733 and Z share Rs. 15,733]

Answer 1

Explanation:

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