Question

Nalini, Malini and Saloni are partner’s sharing profits and

losses in the ratio of 4:3:2. During the year 2015, their

fixed capitals and their drawings (including salaries ) were

as follows :

Name of partners Capitals (Fixed) Drawings

Nalini

Malini

Saloni

3,60,000

2,40,000

1,50,000

36,000

27,000

22,500

Each partner is entitled to a salary of Rs.1, 500 p.m. and

interest on capital @ 5%p.a. During the year Nalini

advanced a loan of Rs.1, 50,000 to the firm bearing

interest @ 6% p.a.

The trading profit for the year before making any

adjustment amounted to Rs.1, 63,500

Prepare:

1.Profit and loss appropriation Account

2.Partner’s Capital Account

3.Partner’s Current Account



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Answer 1

Question:

As per Companies Act 1956,

(A)

Amalgamation includes absorption

( (B)

Absorption includes amalgamation

(C)

Amalgamation excludes absorption

(D)

Internal reconstruction includes

external reconstruction.​