Question

K and R were partners sharing profits in the ratio of 3:2. Following terms were agreed upon between the
partners : (1) Interest on Capital @ 10% per annum (2) Interest on drawings @ 5%. (3) Salary to k for conducting
business of the firm 5000 per month. Following informations are available for the accounting year ended 31st March,
2017 : Capital of K on 01.04.2016 2,00,000 ; Capital of R on 01.04.2016 * 1,20,000; Current Account of K on
01.04.2016 * 12,000 (Cr.); Current Account of Ron 01.04.2016 4,000,(Dr.); Additional Capital by K on 01.10.2016
80,000; Drawings during the year by K 20,000; Drawings during the year by R 320,000; Profit for the year 1,34,000
Pass journal entries, prepare Profit and Loss Appropriation Account and show Capital Accounts of Partners
assuming capitals are fixed.​

Answer 1

Answer:

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Explanation:

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