Question

Q.9. . Pooja and Archna are partners in a firm sharing profits and losses in the ratio of 2:1. Their capital Accounts as on 1st April 2017 stand at ₹. 70,000 and ₹. 30,000 respectively. The partners are allowed interest on capital @ 10% p.a. the drawings of the partners during the year ended 31st March 2018 amounted to ₹. 4,800 and ₹. 3,600 respectively. Interest is charged on drawings at the rate of 10% p.a. Pooja has given a loan to firm as on 1st August 2017 of ₹. 20,000. The profit of the firm before above adjustment was ₹. 80,000. 10% of this profit is to be kept in a Reserve Account. Current A/c balances on 1st April 2018 were Pooja ₹. 5,000 (Cr.); Archna ₹. 23,000 (Dr.).Prepare profit and Loss Appropriation Account and partners Current Accounts.

Answer 1

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