Question

On 1st April, 2019, Lal, Bal and Pal enter into partnership contributing * 2,50,000; * 1,30,000 any
* 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-3 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.
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Answer 1

Answer:

2 (C): Classify the Accounts into Assets, Liabilities, Income, Expenditure and Capital (3M)

(1) Goods A/C

(2) Wages A/C

(3) Loan A/C

(4) Debtors A/C

(5) Creditors A/C

(6) Furniture A/C

(7) Bills Receivable A/C (8) Meena's Capital A/c (9) Drawing A/C

(10) Discount A/C

(11) Rent Received A/c (12) Building A/C

CANA