Question

Kabi Zoravar and Pandare partners sharing profits in the ratio of 5 3:2. Their capitals as on 1st April, 2019
were Kabir 25.20.000, Zoran 3.20,000 and Paul 2.00.000
The Partnership Deed provided as follows:
Kabir and Zomaar each will get salary of 24000 pa
GO Parul vill get commission of 2% of Sales
Interest on capital is to be allowed e 5% pa
Interest on Drawings is to be charged e 5% pa
M 10% of Divisible Profit is to be transferred to General Reserve
Sales for the year ended 31st March 2020 were ? 50,00,000. Drawings by each of the partners during the
year was 60,000. Net Profit for the year was 1.55,500.
Prepare Profit and Loss Appropriation Account for the year ended 31st March 2020​

Answer 1

Explanation:

Kabi Zoravar and Pandare partners sharing profits in the ratio of 5 3:2. Their capitals as on 1st April, 2019

were Kabir 25.20.000, Zoran 3.20,000 and Paul 2.00.000

The Partnership Deed provided as follows:

Kabir and Zomaar each will get salary of 24000 pa

GO Parul vill get commission of 2% of Sales

Interest on capital is to be allowed e 5% pa

Interest on Drawings is to be charged e 5% pa

M 10% of Divisible Profit is to be transferred to General Reserve

Sales for the year ended 31st March 2020 were ? 50,00,000. Drawings by each of the partners during the

year was 60,000. Net Profit for the year was 1.55,500.

Prepare Profit and Loss Appropriation Account for the year ended 31st March 2020