Anju and Reena are partners of a firm sharing profits and losses in the ratio of 2:1.
Their capital, were Rs. 180,000 and Rs. 160,000. The profit during the year were Rs. 50,000.
According to partnership deed, both partners are allowed salary, Rs. 2000 per month to
each partner. Interest allowed on capital @ 10%p.a. The drawings at the end of the period
were Rs. 7,500 for Anju and Rs. 5,500 for Reena. Interest is to be charged @ 5% p.a. on
drawings. Prepare partners’ capital accounts, assuming that the capital account are
fluctuating.
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