Question

Arun and caring are the partners sharing profits and losses in the ratio 2:1.Thier opening capital being 80000 and 50000 respectively. They earned a profit of 20000 before allowing the following :
a. Interest on capital 8 present p.a.
b. Interest on drawings : Around 2000 and varun 2500.
c. Salary to arun 3000 p.a.
d. Commission to varun 2000 p.a.
Prepare profit and loss appropriate account for the year ending 31-03-2018.

Answer 1

Answer:

a

Explanation:

Arun and caring are the partners sharing profits and losses in the ratio 2:1.Thier opening capital being 80000 and 50000 respectively. They earned a profit of 20000 before allowing the following :

a. Interest on capital 8 present p.a.

b. Interest on drawings : Around 2000 and varun 2500.

c. Salary to arun 3000 p.a.

d. Commission to varun 2000 p.a.

Prepare profit and loss appropriately