Question

0. 12. Lata and Mamta are partners with capitals of 3.00.000 and $2,00,000 respectively sharing profits as Lata 70% and Mamta 30%. During the year ended 31st March 2016 they earned a profit of 2.26,440 before allowing interest on partner's loan. The terms of partnership are as follows: (1) Interest on Capital is to be allowed 7 pa (1) Lata to get a salary or 2,500 per month (in) Interest on Mamta's Loan account of 780.000 for the whole year. (1) Interest on drawings of partners at 89 per annum. Drawings being Lata 36,000 and Mamta 248.000. (1) 1/10th of the distributable profit should be transferred to General Reserve. Prepare the Profit and Loss Appropriation Account (Ans. Share of Profit: Lata 1,00,800 and Mamta 243,200.1 Interest on Loan will be calculated at op.a. (in Interest on Drawings will be calculated for an average period of 6 months in Transfer to General Reserve will be 10% of net profit ie 10% of 1.60.000 16.000​

Answer 1

1+1=2

2+2=4

3+3=6

4+4=8

5+5=10