X, Y, and Z entered into a partnership on 1st October 2022 to share profits in the ratio of 4:3:3. X, personally guaranteed that Z’s share of profit after allowing interest on capital @ 10% p.a. would not be less than ₹ 8,000 in a year.
X, Y, and Z entered into a partnership on 1st October 2022 to share profits in the ratio of 4:3:3. X, personally guaranteed that Z’s share of profit after allowing interest on capital @ 10% p.a. would not be less than ₹ 8,000 in a year. Capital contributions were: X – ₹ 3,00,000, Y – ₹ 2,00,000, and Z – ₹ 1,50,000.
Profit for the year ended 31st March 2023 was ₹ 1,60,000. Prepare Profit and Loss Appropriation Account.
Anurag Pathak Changed status to publish April 11, 2024
Solution:-
Note:- As partners started business on 1st October, thus interest on capital and guarantee to partners are provided only for six months from 1st October to 31st March.
Anurag Pathak Changed status to publish March 31, 2024
