Question

6.Lokesh and Azad are partners sharing profits in the ratio 3:2, with capitals of Rs. 50,000 and
30,000, respectively. Interest on capital is agreed to be paid @ 6% p.a. Azad is allowed a salary
of Rs. 2,500 p.a. During 2006, the profits prior to the calculation of interest on capital but after
charging Azad’s salary amounted to Rs. 12,500. A provision of 5% of profits is to be made in
respect of manager’s commission. Prepare accounts showing the allocation of profits and
partner’s capital​

Answer 1

Answer:

Partner's Capital Account is attached in the below mentioned image

Explanation: