Question

A B &C are partners in a firm sharing profit and loss in the ratio of 3:2:1 . There capital were rs. 100000 ,75000, &50000 resp. They agreed to allow interest on capital @ 10%pa and interest on drawings @10%pa. The drawings were rs. 10000,8000,&6000. C was very active getting a salary of rs 2000 per month and in return he guranteed the firm profit would not be less than rs 80000 before charging or allowing interest and salary payable to C. Actual profit for the year ended 31st march 2017 was rs 75000. Prepare profit and loss appropriation a/c and partners capital ac.

Answer 1

I didn’t write the dates