Question

R , S T are partners at a firm sharing profits in ratio 5:3:2 with capitals 50,000 24,000 26,000 respectively . Partners were entitled to an intrest @ 6% per annum on their capitals.R and S guranteed T that his share of profits in any year would not be less than 10,000 excluding intrest .During the year , the firm earned profit of Rs. 48,000 befor charging intrest on capital .R and S had also withdrawn Rs.5000 and RS. 7,400 respectively . Prepare P L Appropriation account

Answer 1

Explanation:

R , S T are partners at a firm sharing profits in ratio 5:3:2 with capitals 50,000 24,000 26,000 respectively . Partners were entitled to an intrest @ 6% per annum on their capitals.R and S guranteed T that his share of profits in any year would not be less than 10,000 excluding intrest .During the year , the firm earned profit of Rs. 48,000 befor charging intrest on capital .R and S had also withdrawn Rs.5000 and RS. 7,400 respectively . Prepare P L Appropriation account