Question

1. Sarita and Vandana were partners in a fim'sharing profits in the ratio of their capitals
contribution on commencement of business which were.Rs 4.00,000 and Rs. 3,00,000
respectively. The fire started business on 1st April 2018 According to the partnership
agreement
a. Every year, in case of profit Rs. 50,000 or 10% of the profit whichever is more will be
transferred to general reserve.
interest on capital is to be allowed at the rate of 12% per annum and interest on
drawing is to be charged @ 10% per annum
Sanita and Vandana are to get a monthly salary of Rs. 10,000 and 15,000
respecuvely
d. The profit for the year ended 31st March 2019 before making above appropriations
was Rs. 6,00,000​

Answer 1

Answer:

profit & loss appropriation

dr. .. ... cr

general reserve 60000. profit &loss 600000

ins on capital

sarita. 48000

vandana. 36000

salary

sarita 120000

vandana. 180000

divisible profit

sarita. 89143

vandana. 66857