Question

174
SPECTRUM ACCOUNTANCY
61.
A and B started a partnership business on 1st April, 2015. They initially contributed a sum of
75,000 and 50,000 towards their capital. They decide to keep the capitals fluctuating
Partnership agreement further provides the following:
(a) Interest on capital employed in the partnership shall be at the rate of 12% per annum on se
initial contribution of capital and 10% per annum on the rest of the capital introduced by
them during the year.
(b) A and B will get a salary of 8,000 and 10,000 per annum, which they will draw half
yearly.
(c) Profits and losses shall be shared in the ratio of 4:3.
Interest on drawings shall be charged at the rate of 15% per annum for the whole year on
the total amount of drawings made by them.
The profits for the year ended 31st March, 2016 before making the above adjustments were
3,80.000. The additional capitals contributed by A and B on 30th September, 2015 were
30,000 and 40,000 respectively. The drawings of A were 25,000 and B * 30.000
An additional sum of 5,000 towards the remuneration for managerial services rendered by A was
paid to him, by the firm during the year.
Prepare profit and loss appropriation account and partners capital accounts.
[Ans. Share of Profit: A2.01.000 and B? 1.50.750
Balance of Capital Accounts : A3.00,750 and B2.24.250]​

Answer 1

Answer:

sorry I didn't understand it