A and B are partners with capitals of 1,00,000 and 80,000 respectively. On 1st April, 2019, the trading profit of the firm for the year before appropriation as per partnership deed was 67,500. As per partnership deed, they were entitled to:
(i) Interest on capital @ 9% p.a.
(ii) A to get salary 1,000 p.m.
(iii) B to get commission 10,000.
(iv) Drawings of A and B were 6,000 and 5,000 respectively and interest thereon amounts to 400 and 300 respectively.
Show how the profits for the year 2019-20 will be distributed between A and B and also show Capital Accounts under: (a) Fixed Capital (b) Fluctuating Capital.
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Profit distributed among A and B is 22778 and 18222 respectively. Current A/c Balance for A and B is 37378 and 30122 respectively. Hope you can understand☺️
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