Ques:-X,Y,Z are in partnership.Y and Z are entitled to 15% commission on net profit to be shared equally for the special service rendered by them to the partnership.However,all the partners are entitled to 8% interest on fixed capitals of Rs500000 each.The business is run at the premises of Mr.X whi is further entitled to get a monthly rent of Rs2000 to be adjusted against his current account.They share profits and losses equally.net profit during the year 2005 was Rs700000.
During the year they were discussing to change the profit sharing ratio because X could not attend to bussiness work.Finally they decided to increase on capital to 12%(a. with effect from 1-10-2005)and to change the profit sharing ratio to 1:2:2 with effect from the same date.With that Yand Z would not get any commission.Prepare Profit and loss appropriation account.
Please help me in this question....I am little bit confused in some of the points.
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