Question

Papia, Koel and Bulbul are three partners in a firm. On 1st April, 2018 the balance of their Capitals were 175,000, 1,00,000 and 1,25,000 respectively and a Loan of 30,000 stood in the books in the name of Papia' carrying 10% interest per annum. On 1st December, 2018 Papia paid in an additional capital of * 25,000 while Bulbul withdrew 25,000 out of his capital on the same day. They get interest on their capital at 12% p.a, and are charged @ 15% ра. on their Drawings. During the year, in anticipation of profits Papia withdraws 4,000, Koel * 6,000 and Bulbul 8,000. Bulbul is entitled to a Commission of 3% on value of orders secured by him, such value being ? 1,45,000. Koel is entitled to receive Commission at 10% of net distributable profit after deducting such Commission. During the year-ended 31st March, 2019, the firm made a Net Profit of * 97,000 before charging interest on Papia's loan. Profits and Losses to be shared by them in their ratio of 2:3:5 upto 20,000 and above 20,000 equally. Required: (a) Journal Entries. (b) Partners
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Answer 1

Answer:

‘One of my favourite birds is the white-eye. It is a dapper little creature measuring only four inches long from the tip of its beak to the end of its tail, and its colouring is pleasing. Its upper body is golden-yellow tinged with green, parts of its wings are dark brown, its chin and throat are bright yellow, its breast is light grey, and the yellow motif is repeated on its abdomen. But its most distinguishing mark is a white ring round each eye, which gives it the appearance of wearing a pair of white horn-rimmed spectacles.’