X Y and Z are in a partnership with capitals of Rs.480000(credit) and Rs.400000(credit) and Rs.32000 (debit) respectively on 1st April,2015. They share profits in the ratio of 2:1:1.
Their partnership deed provides the following:
(i) Partners are to be allowed interest on capitals @5% p.a. and are to charged interest on drawings @6% p.a.
(ii) X is entitled to a remuneration of 10% of the net profit for customers relationship work.
(iii) Y is also entitled to commission of 10% of the net profit after charging remuneration to X as per clause (ii) above
(iv) Z is entitled to a rent of Rs.4000 per month for the use of his premises by the firm.
During the year, X withdrew Rs.800 in the beginning of every month, Y withdrew Rs.1200 during the month and Z Rs.1600 at the end of every month.
Net profit of the firm for the year ended 31st March, 2016 before providing any of the above clauses was Rs.444000.