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X y z in are partner in firm in ratio 3 2 3 their fixed capital amounted to 400000 300000 200000 respectively at the end of year 2020 it was found interest on capital at the rate of 15 percent per annum wasnot allowed and the net profit amounted 215000 was distributed 2 2 1?
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X y z in are partner in firm in ratio 3 2 3 their fixed capital amount...
Understanding the Scenario
In a partnership firm with partners X, Y, and Z, the capital contributions and profit sharing are outlined. The ratio of their investment is 3:2:3, with fixed capitals being:
- X: 400,000
- Y: 300,000
- Z: 200,000
At the end of 2020, it was discovered that interest on capital at 15% per annum was not allowed, which affects their earnings.
Interest on Capital Calculation
The interest on capital for each partner can be calculated as follows:
- Interest for X: 400,000 * 15% = 60,000
- Interest for Y: 300,000 * 15% = 45,000
- Interest for Z: 200,000 * 15% = 30,000
Total Interest = 60,000 + 45,000 + 30,000 = 135,000
Net Profit Distribution
The net profit of 215,000 was distributed in a ratio of 2:2:1 among the partners, which totals to 5 parts.
- Each part = 215,000 / 5 = 43,000
Distribution to each partner:
- X: 2 parts = 86,000
- Y: 2 parts = 86,000
- Z: 1 part = 43,000
Adjusting for Interest on Capital
Since interest on capital was not allowed, the partners must adjust their final earnings:
- X's total = 86,000 - 60,000 = 26,000
- Y's total = 86,000 - 45,000 = 41,000
- Z's total = 43,000 - 30,000 = 13,000
Conclusion
The partners must address the oversight of not allowing interest on capital, which significantly affects their respective earnings. It emphasizes the importance of adhering to partnership agreements regarding capital contributions.
In a partnership firm with partners X, Y, and Z, the capital contributions and profit sharing are outlined. The ratio of their investment is 3:2:3, with fixed capitals being:
- X: 400,000
- Y: 300,000
- Z: 200,000
At the end of 2020, it was discovered that interest on capital at 15% per annum was not allowed, which affects their earnings.
Interest on Capital Calculation
The interest on capital for each partner can be calculated as follows:
- Interest for X: 400,000 * 15% = 60,000
- Interest for Y: 300,000 * 15% = 45,000
- Interest for Z: 200,000 * 15% = 30,000
Total Interest = 60,000 + 45,000 + 30,000 = 135,000
Net Profit Distribution
The net profit of 215,000 was distributed in a ratio of 2:2:1 among the partners, which totals to 5 parts.
- Each part = 215,000 / 5 = 43,000
Distribution to each partner:
- X: 2 parts = 86,000
- Y: 2 parts = 86,000
- Z: 1 part = 43,000
Adjusting for Interest on Capital
Since interest on capital was not allowed, the partners must adjust their final earnings:
- X's total = 86,000 - 60,000 = 26,000
- Y's total = 86,000 - 45,000 = 41,000
- Z's total = 43,000 - 30,000 = 13,000
Conclusion
The partners must address the oversight of not allowing interest on capital, which significantly affects their respective earnings. It emphasizes the importance of adhering to partnership agreements regarding capital contributions.
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X y z in are partner in firm in ratio 3 2 3 their fixed capital amounted to 400000 300000 200000 respectively at the end of year 2020 it was found interest on capital at the rate of 15 percent per annum wasnot allowed and the net profit amounted 215000 was distributed 2 2 1?
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X y z in are partner in firm in ratio 3 2 3 their fixed capital amounted to 400000 300000 200000 respectively at the end of year 2020 it was found interest on capital at the rate of 15 percent per annum wasnot allowed and the net profit amounted 215000 was distributed 2 2 1? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about X y z in are partner in firm in ratio 3 2 3 their fixed capital amounted to 400000 300000 200000 respectively at the end of year 2020 it was found interest on capital at the rate of 15 percent per annum wasnot allowed and the net profit amounted 215000 was distributed 2 2 1? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X y z in are partner in firm in ratio 3 2 3 their fixed capital amounted to 400000 300000 200000 respectively at the end of year 2020 it was found interest on capital at the rate of 15 percent per annum wasnot allowed and the net profit amounted 215000 was distributed 2 2 1?.
X y z in are partner in firm in ratio 3 2 3 their fixed capital amounted to 400000 300000 200000 respectively at the end of year 2020 it was found interest on capital at the rate of 15 percent per annum wasnot allowed and the net profit amounted 215000 was distributed 2 2 1? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about X y z in are partner in firm in ratio 3 2 3 their fixed capital amounted to 400000 300000 200000 respectively at the end of year 2020 it was found interest on capital at the rate of 15 percent per annum wasnot allowed and the net profit amounted 215000 was distributed 2 2 1? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X y z in are partner in firm in ratio 3 2 3 their fixed capital amounted to 400000 300000 200000 respectively at the end of year 2020 it was found interest on capital at the rate of 15 percent per annum wasnot allowed and the net profit amounted 215000 was distributed 2 2 1?.
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