Question

Jadu and Madhu are partners sharing profits and losses in the ratio 3:2.
Their capital as on 01.01.2021 are as follows:-

Jadu Rs. 60,000, Madhu Rs. 40,000.
Prepare a profit & Loss appropriation a/c for the year ended 31.12.21
considering the following items :-

i) interest on capital @ 10%p.a.

ii) Madhu introduced further capital Rs 10,000 on 01.07.2021.

ii) Interest on Drawing @ 12% p.a Jadu drew Rs 1000 p.m. at the begining of each month and Madhu drew Rs. 890 pm at the end of each month.

iv) Jadu is entitted to a salary Rs 1500 pm.

v) Madhu is entitled to a commission @2.5% on sales, sales being Rs
2,00,000.

vi) Net Profit during the year was Rs 1,10,000

vii) Also transfer 10% of the Net Profit to the Reserve fund.​

Answer 1

Answer:

Jadu and Madhu are partners sharing profits and losses in the ratio 3:2.

Explanation:

Jadu and MadhJadu and MaJadu and Madhu are partners sharing profits and losses in the ratio 3:2.

dhu are partners sharing profits and losses in the ratio 3:2.

u are partners sharing profits and losses in the ratio 3:2.

Jadu and Madhu are partners sharing profits and losses in the ratio 3:2.

Jadu and Madhu are partners sharing profits and losses in the ratio 3:2.