Question

Mahesh and Ramesh were partners in a firm sharing Profits in the ratio of 5 : 3. Their capitals were 3,00,000 and 2,00,000 respectively. The partnership deed provided that: (a) Interest on capital to be allowed @ 12% per annum. (b) A commission of 5% of net profit to be allowed to Ramesh. The profit for the year was 1,23,000. Prepare Profit and Loss Appropriation Account.​

Answer 1

3,00,000 and 2,00,000 respectively. The partnership deed provided that: (a) Interest on capital to be allowed @ 12% per annum. (b) A commission of 5% of net profit to be allowed to Ramesh. The profit for the year was 1,23,000. Prepare Profit and Loss Appropriation Account