17. Arvind and Banwari are partners sharing profits in the ratio of 7 : 3 with capitals of
*1,50,000 and 1,00,000 respectively. 5% Interest was agreed to be calculated on the
Capital of each partner and Banwari is to be allowed an annual salary of 24,000
which has not been withdrawn. During the year 2018. Arvind and Banwari withdrew
12,000 and 20,000 respectively. The profits for the year prior to calculation of
interest on capital, but after charging Banwari's salary amounted to 80,000.
A provision of 318% on this amount i.e. * 80,000 is to be made in respect of
commission to the manager.
Prepare Partner's Capital A/c and Profit and Loss Account showing allocation of profits.
[ Ans. Share of Profit : Arvind 45,500 ; Banwari 19,500; Balance of
Capital A/C Arvind , 1,91,00
wari 1,28,500 ]
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Answer:
Share of Profit : Arvind 45,500 ; Banwari 19,500; Balance of
Capital A/C Arvind , 1,91,00
wari 1,28,500
Explanation:
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