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From the following balance sheet of X and Y, calculate interest on capitals @ 10% p.a. payable to X and Y for the year ended 31st December, 2008.LiabilitiesAmount AssetsAmount X's Capital 50,000Sundry Assets 1, 00,000Y's capital 40,000Drawings X 10,000P& L appropriation A/c (1998) 20,0001,10,0001,10,000During the year 2008, X's drawings were Rs. 10,000 and Y's Drawing were Rs. 3,000. Profit during the year, 2008 was Rs.30, 000. |
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Answer» Drawings (Previously deducted).
Working Notes: (1) As X’s drawings are shown in the Balance Sheet, it means his drawings are not deducted. From his .capital till now, so his drawings are not included back. (2) Profits for 2008 were Rs. 30,000 and profits of Rs. 20,000• are, shown in the Balance Sheet, which means only Rs. 10,000 profits were distributed between the partners. |
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