(P & L Appropriation A/c/Partner's Capital Accounts) A and B started business in partnership on 1st Jan., 2013 and contributed 1,00,000 and 80,000 respectively for capital. The terms of the partnership deed are as follows: (a) Interest on capital at 10% p.a. (b) Interest on Drawings @ 12% p.a. (c) A to get a monthly salary2,000 and B a commission of 10,000 p.a. (d) Profit or Loss shall be shared in the ratio of their capitals. The profit for the year was 1,30,030 before making the above adjustments. The drawings were 20,000 and 16,000 of A & B respectively. Prepare Profit and Loss Appropriation Account and Partner's Capital Accounts. The capitals accounts are fluctuating.
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(d) Profit or Loss shall be shared in the ratio of their capitals.
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