X , Y and Z commenced business on 1st April , 2016 with capitals of ? 5,00,000 , ?
Published at : 03 Jan 2021
X , Y and Z commenced business on 1st April , 2016 with capitals of ? 5,00,000 , ? 4,00,000 and ? 3,00,000 respectively . Profits and losses were shared in the ratio of ` 4 : 3 : 3`. Interest on Capitals was paid at 5 % p.a. During 2016-17 and 2017-18 they earned profit of ? 2,00,000 and ? 2,50,000 (before allowing interest on capital) . Drawings of each partner were ? 50,000 per year . On 31st March , 2018 the firm was dissolved . Creditors on that date were ? 1,20,000 . The assets realised ? 13,00,000 net . Give necessary accounts to close the books of the firm .