Question

Q. Babu and Gobu are partners. Prepare capital accounts of the partners when they are fluctuating.

Babu (Rs.)
Capital on 1.1.16 - 8,00,000
Drawings - 1,60,000
Interest on drawings at 5% - 4,000
Share of profit - 84,000
Interest on capital at 6% - 48,000
Salary - 72,000

Gobu (Rs.)
Capital on 1.1.16 - 7,00,000
Drawings - 1,40,000
Interest on drawings at 5% - 2,000
Share of profit - 66,000
Interest on capital at 6% - 42,000​

Answer 1

hint:- the share of profit means profit earned by the partners(pnl)