Question

On 1st April, 2019, Lal, Bal and Pal enter into partnership contributing Rs 2,50,000; Rs1,30,000 and Rs
1,20,000 respectively and sharing profits and losses in the ratio of 5: 3:2. Bal and Pal are entitled
to salaries of 16,000 and 14,500 respectively per year. Interest on capital is allowed @ 5% p.a
and 6% interest is charged on drawings.
During the year ended 31st March, 2020, Lal withdrew 40,000; Bal 25,000 and Pal 15,000.
Interest on drawings being Lal - 2,250; Bal - 1,125 and Pal- 725.
Net Profit for the year ended 31st March, 2020 was 71,400.
Show how the profit is distributed and also prepare the Capital Accounts, if they were fluctuating.​

Answer 1

Answer:

Explanation:On 1st April, 2021, Lal, Bal and Pal enter into partnership contributing 2,50,000; 1,30,000 and 1,20,000 respectively and sharing profits and losses in the ratio of 5: 3:2. Bal and Pal are entitled to salaries of 16,000 and 14,500 respectively per year. Interest on capital is allowed @ 5% pa and 6% interest is charged on drawings, During the year ended 31st March, 2022, Lal withdrew 40,000; Bal 25,000 and Pal ? 15,000, Interest on drawings being Lal- 2,250; Bal- 1,125 and Pal- 725. Net Profit for the year ended 31st March, 2022 was 71,400. Show how the profit is distributed and also prepare the Capital Accounts, if they were fluctuating.