Question

Kishore, Alka and Ravina are in a partnership firm sharing profits in the ratio 3:1:1. Their capitals are ₹3,00,000; ₹2,50,000 and ₹1,00,000 respectively. The following terms are agreed upon: (a) 10% of the net profit is to be transferred to General reserve. (b) Interest on capital @ 10% p.a. is allowed and interest on drawings @ 6% p,a, to be charged. (c) Ravina is entitled to a salary of ₹60,000 p.a. (d) Kishore withdrew ₹3,000 in the beginning of every month Alka withdrew ₹30,000 during the year Ravina withdrew ₹12,000 at the end of each quarter. (e) Profit for the year ended 31 st March, 2020 amounted to ₹5,00,000. Prepare Profit and Loss Appropriation Account. 6

Answer 1

Answer:

60000

30000

10/

100000

25000

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