Question

5B. Ankit and Munna started a partnership business on Jan., 1, 2019. They contributed 1,60,000
and * 1,20,000 respectively as their capitals. The terms of the partnership agreements are as
under:
(i) Interest on capital @ 10% p.a., (ii) Ankit and Munna to get a monthly salary of = 2,000 and
* 3,000 respectively, (iii) Profits are to be shared in the ratio of 3 : 2.
The profit for the year ended 31st December, 2019, before making above appropriations was
1,43,000 Interest on drawings amounted to R2,000 for Ankit and 3,000 for Munna. Prepare
Profit and Loss Appropriation Account.
​

Answer 1

Answer:

1, 2019. They contributed 1,60,000

and * 1,20,000 respectively as their capitals. The terms of the partnership agreements are as

under:

(i) Interest on capital @ 10% p.a., (ii) Ankit and Munna to get a monthly salary of = 2,000 and

* 3,000 respectively, (iii) Profits are to be shared in the ratio of 3 : 2.

The profit for the year ended 31st December, 2019, before making above appropriations was

1,43,000 Interest on drawings amounted to R2,000 for Ankit and 3,000 for Munna. Prepare

Profit and Loss Appropriation Account.