Loan Account of X

Date: April 1

Partners: X, Y, and Z

Retirement: X

Amount due: Rs. 40,000

Payment method: Four equal yearly installments plus interest @10% p.a.

Calculation:

To prepare X's loan account, we need to calculate the principal amount and interest for each installment.

Step 1: Calculate the principal amount for each installment.

Since the total amount due to X is Rs. 40,000, and it is to be paid in four equal yearly installments, the principal amount for each installment would be Rs. 40,000 / 4 = Rs. 10,000.

Step 2: Calculate the interest for each installment.

The interest is calculated at the rate of 10% per annum. Since the installments are paid yearly, we need to calculate the interest for each year.

Year 1: Rs. 10,000 * 10% = Rs. 1,000
Year 2: Rs. 10,000 * 10% = Rs. 1,000
Year 3: Rs. 10,000 * 10% = Rs. 1,000
Year 4: Rs. 10,000 * 10% = Rs. 1,000

Step 3: Prepare X's loan account.

The loan account will include the principal amount, interest for each year, and the total amount due for each year.

Loan Account of X
| Year | Principal Amount | Interest | Total Amount Due |
|------|-----------------|----------|-----------------|
| 1 | Rs. 10,000 | Rs. 1,000 | Rs. 11,000 |
| 2 | Rs. 10,000 | Rs. 1,000 | Rs. 11,000 |
| 3 | Rs. 10,000 | Rs. 1,000 | Rs. 11,000 |
| 4 | Rs. 10,000 | Rs. 1,000 | Rs. 11,000 |

Explanation:

X, Y, and Z are partners in a business. X decides to retire on April 1. At the time of retirement, Rs. 40,000 is due to X. The partners agree to pay this amount in four equal yearly installments. In addition, interest is charged at the rate of 10% per annum.

To prepare X's loan account, we first calculate the principal amount for each installment. Since the total amount due is Rs. 40,000 and it is to be paid in four installments, the principal amount for each installment is Rs. 10,000.

Next, we calculate the interest for each installment. As the installments are paid yearly, we calculate the interest for each year at the rate of 10% per annum. The interest for each year is Rs. 1,000.

Finally, we prepare X's loan account, which includes the principal amount, interest