Question

SPECTRUM ACCOUNTANCY-1
PA
DE
6 A and B started a partnership business on 1st April, 2015. They initially contributed a sum of
*75.000 and 250,000 towards their capital. They decide to keep the capitals fluctuating
Partnership agreement further provides the following:
Interest on capital employed in the partnership shall be at the rate of 12% per annum on the
initial contribution of capital and 10% per annum on the rest of the capital introduced by
them during the year.
(1) A and B will get a salary of 8,000 and + 10,000 per annum, which they will draw hall
yearly
(c) Profits and losses shall be shared in the ratio of 4:3.
(d) Interest on drawings shall be charged at the rate of 15% per annum for the whole year on
the total amount of drawings made by them.
The profits for the year ended 31st March, 2016 before making the above adjustments were
*3.80.000. The additional capitals contributed by A and B on 30th September, 2015 were
30,000 and 40,000 respectively. The drawings of A were 25,000 and B * 30.000
An additional sum of 5,000 towards the remuneration for managerial services rendered by A was
paid to him, by the firm during the year.
Prepare profit and loss appropriation account and partners capital accounts.
(Ans. Share of Profit: A2,01,000 and B1,50.750
Balance of Capital Accounts: A3,00,750 and B*2,24,250]​

Answer 1

Answer:

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