Question

On 1st Oct., 2017, Ram and Krishna started a cloth business with capital of 10,000
and 8,000 respectively. As per partnership agreement, partners were entitled to
get 10% annual interest on their capital and Krishna was entitled to get a salary
of 300 per month​

Answer 1

Answer:

Kixed and fluctuating capital accoun

1. on 1st oct., 2017. ram and krishna started a cloth business with capital of 10,000

and * 8.000 respectively. as per agreement, partners were entitled to

get 10% annual interest on their capital and krishna was entitled to get a salary

of 300 per month. profit & loss of the firm was to be divided equally among the

partners. each partner was entitled to withdraw * 250 per month as drawings with

interest. the accounts were closed on 31st march, 2018 and there was profit of

6,050 before allowing interest and salary.

prepare partners capital accounts on 31st march, 2018 according to :

(1) fixed and

(1) fluctuating capital and prepare p & l appropriation account also.