X, Y and Z commenced business on 1st April, 2013 with capitals of Rs.

1.	X, Y and Z commenced business on 1st April, 2013 with capitals of Rs. 1,00,000, Rs. 80,000 and Rs. 60,000 respectively. Profit & losses were shared in the ratio of 4 : 3 : 3 respectively. Capitals carried interest at 5% p.a. During the years ended 31st March 2014 and 2015, they made profits of Rs. 40,000 and Rs. 50,000 before allowing interest on capitals. Drawings of each partner were Rs. 10,000 per year. On 31st March, 2015 the firm was dissolved. Creditors on that date were Rs. 24,000. The assets realised a net amount of Rs. 2,60,000. Prepare capital accounts of partners for two years till the books are finally closed and the realisation account.
Answer» X, Y and Z commenced business on 1st April, 2013 with capitals of Rs. 1,00,000, Rs. 80,000 and Rs. 60,000 respectively. Profit & losses were shared in the ratio of 4 : 3 : 3 respectively. Capitals carried interest at 5% p.a. During the years ended 31st March 2014 and 2015, they made profits of Rs. 40,000 and Rs. 50,000 before allowing interest on capitals. Drawings of each partner were Rs. 10,000 per year. On 31st March, 2015 the firm was dissolved. Creditors on that date were Rs. 24,000. The assets realised a net amount of Rs. 2,60,000. Prepare capital accounts of partners for two years till the books are finally closed and the realisation account.

X, Y and Z commenced business on 1st April, 2013 with capitals of Rs. 1,00,000, Rs. 80,000 and Rs. 60,000 respectively. Profit & losses were shared in the ratio of 4 : 3 : 3 respectively. Capitals carried interest at 5% p.a. During the years ended 31st March 2014 and 2015, they made profits of Rs. 40,000 and Rs. 50,000 before allowing interest on capitals. Drawings of each partner were Rs. 10,000 per year. On 31st March, 2015 the firm was dissolved. Creditors on that date were Rs. 24,000. The assets realised a net amount of Rs. 2,60,000. Prepare capital accounts of partners for two years till the books are finally closed and the realisation account.

Answer»

X, Y and Z commenced business on 1st April, 2013 with capitals of Rs. 1,00,000, Rs. 80,000 and Rs. 60,000 respectively. Profit & losses were shared in the ratio of 4 : 3 : 3 respectively. Capitals carried interest at 5% p.a.

During the years ended 31st March 2014 and 2015, they made profits of Rs. 40,000 and Rs. 50,000 before allowing interest on capitals. Drawings of each partner were Rs. 10,000 per year.

On 31st March, 2015 the firm was dissolved. Creditors on that date were Rs. 24,000. The assets realised a net amount of Rs. 2,60,000.

Prepare capital accounts of partners for two years till the books are finally closed and the realisation account.

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