Question

David and John were partners in a firm sharing profits in the ratio of 4:1.
Theircapitals on 1.4.2006 were : David Rs. 2,50,000 and John Rs.50,000.
The partnershipdeed provided that David will get a commission of 10% on
the net profit afterallowing a salary of Rs. 2,500 per month to John. The
profit of the firm for the yearended 31.3.2007 was Rs.1,40,000.
Prepare profit and Loss Appropriation Account for the year ended
31.3.2007
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Answer 1

Answer:

The profit of the firm for the year ended 31.3.2007 was Rs.1,40,000. Prepare profit and loss Appropriation account

Explanation:

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