X, Y and Z are partners with capitals of ₹ 4,00,000; ₹ 3,00,000 and ₹ 2,00,000 respectively. They charge 8% p.a. interest on their capitals are divide the profits in the ratio of 3 : 2 : 1

X, Y and Z are partners with capitals of ₹ 4,00,000; ₹ 3,00,000 and ₹ 2,00,000 respectively. They charge 8% p.a. interest on their capitals are divide the profits in the ratio of 3 : 2 : 1. X has guaranteed that Z’s share shall not amount to less than ₹ 50,000 in any one year.

Their Drawings during the year were ₹ 50,000; ₹ 40,000 and ₹ 35,000 respectively. Net Profits for the year before providing interest on capitals was ₹ 2,52,000. Prepare P & L Appropriation A/c and capital accounts.

[Ans. Profits X ₹ 70,000; Y ₹ 60,000; Z ₹ 50,000.]