question_answer

You are required to answer the/allowing questions 45 to 50 :

X, Y and Z are partners. Fixed Capitals balance on 1st April 2020: X Rs.2,00,000; Y Rs.75,000 and Rs.3,50,000. Partnership deed provides:

(i) Interest on capital @ 9% p.a. and Interest on drawings 6% p.a.

(ii) Salary of 6,000 per month to Y

(iii) Profit (if any) in equal ratio.

X withdrew during the year Rs.25,000 and Y Rs.15,000. Z withdrew Rs.62,500 for his personal use on 1st December 2020.

Firm earned a profit of Rs.1,70,000 for the year ending 31st March 2021..

Total interest on drawings to be shown in Profit and Loss Appropriation Account:

A) 2,450

B) 3,650

C) 2,650

D) 3,850