Question - 13

X, Y and Z are partners sharing profit in the ratio of 2:1:1 their capital were Rs. 40,000, Rs. 24,000 and Rs. 16,000 respectively interest on capital is allowed of 6% p.a. and interest on drawings is charged @ 5% p.a. X is entitled to salary of Rs. 500 per month Z is entitled to a commission of 1% on sales. 

The Profit for the year 2021 was Rs. 30,000 and sales were Rs. 4,00,000 Drawings of the partners were Rs. 10,000, Rs. 6,000 and Rs. 13,000 respectively the interest on which amounted to Rs. 200, Rs. 100 and Rs. 500 respectively. 

Prepare Profit and loss appropriation A/c.

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