Question

Pls solve this as soon as possible... Urgently needed

Answer 1

Explanation:

Sukesh and Vanita were partners in a firm. Their partnershin agreement provides that:

Profits would be shared by Sukesh and Vanita in the ratio of 3:2.

(ii) 5% p.a. interest is to be allowed on capital.

(iii) Vanita should be paid a monthly salary of 600.

The following balances are extracted from the books of the firm, on March 31, 2019.

Particulars

Sukesh

Vannta (

Capital Accounts

40,000

40,000

Current Accounts

7,200 (Cr.)

2,800 (Dr.)

Drawings

10,850

8,150

Net profit for the year, before charging interest on capital and after charging partner's salary was 9,500.

Prepare the Profit and Loss Appropriation Account for the year ending 31 March 2020 and the Partner's Current

Accounts.