Question

Que # 2 KOTHARI and PRADEEPA are partners sharing profit and loss in the ratio 3:2. They
employed CHANDAN as their manager to whom they paid a salary of 750p.m. CHANDAN
deposited 20,000 on which interest payable was 9% per annum. On 30t1st March 2014(After
division of the year's profits) it was decided that CHANDAN should be treated as partner with
effect from 1st April 2010 with 1/6th share in profits, his deposit being considered as capital,
carrying interest @ 6% per annum like capitals of other partners. The firm's Profit and losses
after allowing interest on Capitals were as follows:
31st March 2011
profit
59,000
31st March 2012
profit
62,000
31st March 2013
Loss
4,000
31st March 2014
Profit
78,000
Record the necessary Journal entries to give effect to the above
[Note- Interest on capital is to be allowed as a charge against profits]​

Answer 1

Answer:

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