Aseem and Nihar started business on 1st April, 2019 with capitals of * 3,00,000 and 2,00,000respectively. According to the Partnership Deed, Nihar is to get salary of 5,000 per month,Aseem is to get 10% commission on Profit after allowing salary to Nihar and interest is to beallowed on capitals @ 6% p.a. Profit-sharing ratio between the two partners is 3:2. During theyear,the firm earned profit of 2,50,000.Aseem had given loan of 1,00,000 to the firm on 1st April, 2019. Interest on loan was allowed@8% p.a. Nihar was given loan of 2,00,000 on which interest was charged 11,000. Managerwas to be allowed commission of 3,000.Pass Journal entries for distribution of profit and prepare Profit and Loss AppropriationAccount. The firm closes its books of account on 31st March every year.
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Aseem and Nihar started business on 1st April, 2019 with capitals of * 3,00,000 and 2,00,000respectively. According to the Partnership Deed, Nihar is to get salary of 5,000 per month,Aseem is to get 10% commission on Profit after allowing salary to Nihar and interest is to beallowed on capitals @ 6% p.a. Profit-sharing ratio between the two partners is 3:2. During theyear,the firm earned profit of 2,50,000.Aseem had given loan of 1,00,000 to the firm on 1st April, 2019. Interest on loan was allowed@8% p.a. Nihar was given loan of 2,00,000 on which interest was charged 11,000. Managerwas to be allowed commission of 3,000.Pass Journal entries for distribution of profit and prepare Profit and Loss AppropriationAccount. The firm closes its books of account on 31st March every year.