Class 12 Accountancy Chapter 2 Q16 Solution – Profit and Loss Appropriation Account

Question 16:

X, Y, and Z are partners in a firm sharing profits in the ratio of 2:2:1. Fixed capitals of the partners were X ₹5,00,000; Y ₹5,00,000 and Z ₹2,50,000 respectively. The Partnership Deed provides that interest on capital is to be allowed @ 10% p.a. Z is to be allowed salary of ₹20,000 per month.

Profit of the firm for the year ended 31st March, 2024 after Z’s salary was ₹4,00,000.