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26. Manpreet and Harmeet are partners sharing profits in the ratio of 3 : 1 with capitals
1,00,000 and 40,000 respectively. Interest on capital is agreed @ 10% p.a. Harmeet is to
allowed a salary of 500 per month. During the year they withdrew 10,000 each. Profit for
year amounted to 36,000 prior to appropriations and before charging depreciation
on furniture 2000 and writing off bed debt
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