A and B are partners sharing profit and losses in the ratio of 3:2 At the end of the year i.e,., on 31 st Mach ,2018 (after division of the year 's profit ) they decided to a take C into parnership with effect from 1st April ,2015 As C was getting annual salary of Rs. 45,000 he had also advanced Rs, 3,00,000 to the firm 's april ,205 As C was getting a interest @10% p.a During the three finacilal years firm's profits after adjustment salary toC interest on loan and interest on th capital of the partners were:
`{:("YearEnded",,),(31st "march 2016","profit ",Rs. 4.00.000),(31st"March".2017,"Loss",Rs. 2.00.000),(31st"March .2018","profit",Rs. 6.00.000):}`
According to the new agrreement ,C is to be given annual salary of Rs. 35,000 and 1/5th share in the profits after adjusting salary to C interest on loan and interest on the capital will carry interest @6% p.a
Record partners ,his capital to give effect to the above arrangement .
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