20.P and Q are partners in a firm with capital of Rs. 3,00,000 and Rs. 2,00,000
respectively. P gave a loan of Rs. 1,50,000 to the firm. The profit of the firm before
allowing interest on loan amounted to Rs. 75,000 for the year ending 31st March,
2017. Show distribution of profit after considering the followings:
i) Interest on capital be allowed @ 5% p.a.
ii) Interest on drawing is charged @ 6% p.a. Drawings of P and Q during the year
were Rs. 50,000 and Rs. 40,000 respectively.
P is allowed commission @ 1% on sales which is Rs. 3,00,000.
iv) Q is entitled to a commission @ 5% of net profit after charging commission of P
and his own.
v) 10% of divisible profit be transferred to reserve account.
Answers
Answered by
1
sorry I don't know what is the answer.
Similar questions