y and z are partners with capital of rs 25000 and 15000 each partner is entitled to 9% intrest on capital z is entitled to a salary of rs 6000 p.a together with a commision of 6% of net profit remaining after deducting intrest on capitals and salary and after charging his commision the profit for the year before making any of the above adjstment amount to rs 30800 prepare partners capital acc

Partners’ Capital Accounts

Dr.

 

Cr.

Particulars

Y

Z

Particulars

Y

Z

 

 

 

Balance C/d

25,000

15,000

 

 

 

Interest on Capital (WN:1)

2,250

1,350

 

 

 

Z’s Salary

 

6,000

 

 

 

Commission (WN:2)

 

1,200

 

 

 

Profit and Loss (WN :3)

10,000

10,000

Balance C/d

37,250

33,550

 

 

 

 

37,250

33,550

 

37,250

33,550

 

 

 

 

 

 

 

Working Notes:

WN:1 Interest on Capital

WN: 2  Z’s Commission 

Profit After Charging Interest and Salary = Rs 30,800- Rs 2,250-Rs1, 350- Rs6,000 = Rs 21,200

WN: 3 Share of Profit

As nothing has been mentioned in the question regarding profit sharing ratio we are assuming the profit sharing ratio is 1:1

Profit remaining : 30,800-2,250-1,350-6,000-1,200 = Rs 20,000

Y’s Share = Rs 10,000

Z’s Share = Rs 10,000 

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