Basant and Vishnu are partners in a firm.On 1st April 2015 their capitals were 25,000 and 20,000
repectively. They are paid interest on capital at the rate of 8% p.a. and 12% interest is charged on drawings.
Basant advanced 10,000 as loan to the firm on October 1, 2015. Vishnu is entitles to get a salary of 5.000
per annum. Interest charged on their drawings is 600 and 500 respectively. The profits for the year ended
31 March, 2016 before the above adjustments were 25,000. Prepare Profit and Loss Adjustment Account for
the year 2015-16
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Explanation:
Basant advanced 10,000 as loan to the firm on October 1, 2015. Vishnu is entitles to get a salary of 5.000
per annum. Interest charged on their drawings is 600 and 500 respectively. The profits for the year ended
31 March, 2016 before the above adjustments were 25,000. Prepare Profit and Loss Adjustment Account for
the year 2015-16
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