Question

(Fluctuating Capitals)
Shiv and Hari entered into partnership on 1st April, 2017, contributing *5,00,000
and 2,00,000 respectively. Hari also introduced 1,00,000 as additional capital on 1st
July, 2017. They agreed to share profits and losses in the ratio of 3: 2. Following
information is provided regarding the partnership:
(1) Shiv and Hari, each are allowed a salary of 5,000 per quarter.
(ii) Interest is to be allowed on Capitals @ 8% p.a. and charged on drawings at
10% p.a.
Drawings of Shiv and Hari during the year were 12,000 and 10
,000
respectively. Profit as at 31st March, 2018 before the above mentioned adjustments
was 1,96,000.
Prepare
(1) Necessary journal entries relating to appropriation of profits,
(ii) Profit and Loss Appropriation A/c, and
(iii) Partner's Capital A/cs.
3
40,000
مر
12
500
,000​

Answer 1

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