Question

3. A, B and Care partners in a firm. Sharing Profits and Lasses in proportion to their capitals at the beginning
of the year. They are entitled annually to draw * 6,000, 2 5,000 and 4,000 respectively out of their anticipated
shares of profits. Any drawings in excess of these amounts are to be regarded as advances taken from the firm
and are to be subject to interest at an average rate of 6% per annum. The capitals as at the beginning of the
year are to be allowed interest at an average rate of 5% per annum
The capital of the partners are as at the beginning of the year were. Ar 80,000, BT 60,000 and C 40,000
The credit balances of their current accounts were AT 2,304, B 73,728 and C 1.152. Their drawings during
the year were: A 10,000, B 12,000 and C 25,000. The profits of the firm for the year were 30,096, before
making any adjustments for interest as above.
Draw up the Capital and Current Accounts of the partners and Profit & Loss Appropriation Account.
Ans. Current AC 5,760, B2 1,580 and C 2,940; P&L AT 9,696, B 3 7.272 and C 74.848)
Fixed and Floating Capital​

Answer 1

Answer:

3. A, B and Care partners in a firm. Sharing Profits and Lasses in proportion to their capitals at the beginning

of the year. They are entitled annually to draw * 6,000, 2 5,000 and 4,000 respectively out of their anticipated

shares of profits. Any drawings in excess of these amounts are to be regarded as advances taken from the firm

and are to be subject to interest at an average rate of 6% per annum. The capitals as at the beginning of the

year are to be allowed interest at an average rate of 5% per annum

The capital of the partners are as at the beginning of the year were. Ar 80,000, BT 60,000 and C 40,000

The credit balances of their current accounts were AT 2,304, B 73,728 and C 1.152. Their drawings during

the year were: A 10,000, B 12,000 and C 25,000. The profits of the firm for the year were 30,096, before

making any adjustments for interest as above.

Draw up the Capital and Current Accounts of the partners and Profit & Loss Appropriation Account.

Ans. Current AC 5,760, B2 1,580 and C 2,940; P&L AT 9,696, B 3 7.272 and C 74.848)

Fixed and Floating Capital