Question

- Ayush and Ashta are partners of a firm sharing profit and loss in the ratio of 2:1. Their
capitals were * 20,000 and 10,000. Interest on capital to be allowed @ 5% and interest
on drawings will be charged @ 6%.
Drawings of Ayush : 1st April 100, 1st July 200 and 1st Dec. 300.
Drawings of Ashta : 1st March 200, 1st Augusti 200 and 1st Oct. 7 400.
Profit for the year before charging interest on capital and drawings was 12,000.
Prepare profit and loss Appropriation account and show the calculation of interest on
drawings if the books are closed on 31st December each year.​

Answer 1

Answer:

The fundamental advantage of principles-based accounting is that its broad guidelines can be practical for a variety of circumstances. Precise requirements can sometimes compel managers to manipulate the statements to fit what is compulsory.

Answer 2

Answer:

interest on drawing 12 and 21