Please solve it soon . Urgently required for tomorrow.
Journal |
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Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
Z’s Loan A/c |
Dr. |
|
2,00,000 |
|
To Z’s Capital A/c |
|
|
2,00,000 |
|
(Z’s Loan transferred to his Capital Account) |
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
3,600 |
|
Y’s Capital A/c |
Dr. |
|
2,400 |
|
To Z’s Capital A/c |
|
|
6,000 |
|
(Z's excess credit balance paid to him by X and Y in the ratio of 3:2) |
|
|
|
|
|
|
|
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Working Notes:
WN 1 Profit before Z’s Salary and Interest on Loan.
Year |
Profit/ Loss |
+ |
Salary |
+ |
Interest on Z’s loan |
= |
Profit before Z’s Salary and Interest on Loan |
2012-2013 |
5,90,000 |
+ |
90,000 |
+ |
18,000 |
= |
6,98,000 |
2013-2014 |
6,26,000 |
+ |
90,000 |
+ |
18,000 |
= |
7,34,000 |
2014-2015 |
(40,000) |
+ |
90,000 |
+ |
18,000 |
= |
68,000 |
2015-2016 |
7,80,000 |
+ |
90,000 |
+ |
18,000 |
= |
8,88,000 |
Profit before Interest on Z’s Capital (for 4 years) |
23,88,000 |
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|
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WN 2 Calculation of Interest on Capital
Interest on Z’s Capital for 4 years = 12,000 × 4 = Rs 48,000
WN 3 Calculation of Z’s Share of Profit as a Partner
Profit after Interest on Z’s Capital = Profit before Interest on Z’s Capital − Interest on Z’s Capital
= 23,88,000 − 48,000 = Rs 23,40,000
Z’s Profit Share as a Partner for 4 years
∴Z’s Share of Interest on Capital and Profit Share as a Partner = 48,000 + 3,90,000 = Rs 4,38,000
Z’s Salary and Interest on Loan as Manager = 72,000 + 3,60,000 = Rs 4,32,000
Adjustment of Z's share of Profit
Z’s Share as a Partner Less: Z’s Share as a Manager Z will get from X and Y in their profit sharing ratio
|
4,38,000 |
(4,32,000) |
|
6,000 |
|
|
Profit to be transferred by X and Y in favour of Z