| X and Y are partners since last 8 years. Y has provided office space to the firm on rent in his personal building. They share profits in the ratio of 3:2. Capitals are fixed, and their Balance of capital account on 1st April 2020 are: 5,00,000 and 2,50,000. Their Current Account balance on that date: X 1,00,000 Credit and Y 28,000 Debit. |
| Rent of Rs.1,000 per month is to be paid to Y. |
| As per the partnership deed X to be paid a salary of Rs.5,000 per month whereas Y was to get a commission of Rs.30,000 per year. Interest on capital to be calculated @ 8% p.a. and interest on drawings 6% p.a. |
| X withdrew Rs.15,000 on 30th September 2020 and Y withdrew Rs.30,000 on 1st September 2020. |
| Profit Rs.1,32,000 before providing above: |
| Net Profit to be transferred to Profit and Loss Appropriation Account: |
A) 1,20,000
B) 1,32,000
C) 1,00,000
D) 1,15,000
Correct Answer: A
Solution :
1,20,000
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