Question

Fluctuating Capitals
Q. 5 (A). On 1st April, 2018 A and B commenced business with Capitals of
6,00,000 and 2,00,000 respectively. On 31st March, 2019 the net profit (before
taking into account the provisions of deed) was 2,40,000. Interest on capitals is to be
allowed at 6% p.a. B was entitled to a salary of 60,000 p.a. The drawings of the
partners A and B were 60,000 and 40,000 respectively. The interest on Drawings for
A being 2,000 and B 1,000. Assuming that A and B are equal partners, prepare the
Profit & Loss Appropriation A/c and Partner's Capital Accounts as at 31st March,
2019.
[Ans. Divisible Profits 1,35,000; Capitals A 3
6,41,500 and B 2,98,500.]
Note: In the absence of information, Capitals will be treated fluctuating.​

Answer 1

Answer:

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Explanation:

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