Question

Tall, Short and Thin share profits and losses in the ratio of 3: 2:1. Tall draws 7 600 each month.
Short draws 250 and Thin 200 on the last day of every month and in addition, each draws his
respective annual salary.
The profit for the year which ended on 30th September, 2019 amounted to 20,000. On 1st
October, 2018 the capitals of the partners were: Tall 20,000, Short 16,000, Thin? 15,000. On 1st
April, 2019 it was decided to purchase a new plant costing 7,200. The partners paid in additional
capital in proportion to their profit-sharing ratio.
Interest on capital was to be allowed at 8% and interest of 6% was to be charged on the total
amount drawn by each partner. Salaries of 4,000 were to be credited annually to both Short and
Thin
Write up the Profit and Loss Appropriation Account and the Capital Accounts of the three
partners​

Answer 1

Answer:

Tall, Short and Thin share profits and losses in the ratio of 3: 2:1. Tall draws 7 600 each month.

Short draws 250 and Thin 200 on the last day of every month and in addition, each draws his

respective annual salary.

The profit for the year which ended on 30th September, 2019 amounted to 20,000. On 1st

October, 2018 the capitals of the partners were: Tall 20,000, Short 16,000, Thin? 15,000. On 1st

April, 2019 it was decided to purchase a new plant costing 7,200. The partners paid in additional

capital in proportion to their profit-sharing ratio.

Interest on capital was to be allowed at 8% and interest of 6% was to be charged on the total

amount drawn by each partner. Salaries of 4,000 were to be credited annually to both Short and

Thin

Write up the Profit and Loss Appropriation Account and the Capital Accounts of the three

partners

Answer 2

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