A and B started a partnership business on 1 January 2012 with capitals of Rs.60,000 and Rs.40,000 respectively. On 30th June 2012 A introduced further capital of Rs.20,000. Drawings during the year amounted to Rs.12,000 and Rs.8,000 respectively for A and B. Interest on capital is to be allowed at 5% p.a No interest is to be charged on drawings. B is to be allowed a salary of Rs.2,000 p.m. The profit for the year before charging salary and interest Rs.80000. You are required to prepare the accounts of the partners presuming (i) Capital to be fixed and (ii) Capital to be fluctuating.
Answers
Answer:
Partnership Deed is a written agreement among the partners of a partnership firm. It includes agreement on profit sharing ratio, salaries, commission of partners, interest provided on partner’s capital and drawings and interest on loan given or taken by the partners, etc. Generally following details are included in a partnership deed.
1. Objective of business of the firm
2. Name and address of the firm
3. Name and address of all partners
4. Profit and loss sharing ratio
5. Contribution to capital by each partner
6. Rights, types of roles and duties of partners
7. Duration of partnership
8. Rate of interest on capital, drawings and loans
9. Salaries, commission, if payable to partners.
10. Rules regarding admission, retirement, death and dissolution of the firm, etc