Question

Vinod and Kumar are partners in a firm sharing profits in the ratio of 3:2. The
partnership deed provided that Vinod was to be paid salary of Rs.5,000 per month
and Kumar was to get a commission of Rs.20,000 per year. Interest on capital was to
be allowed @5% p.a. and interest on drawings was to be charged @6% p.a. interest
on Vinod’s drawings was Rs.2,500 and on Kumar’s drawings Rs.850. Capital of the
partners were Rs.4,00,000 and Rs.3,00,000 respectively and were fixed. The firm
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earned a profit of Rs.1,81,150 for the year ended 31st March, 2014. Prepare Profit
and Loss Appropriation Account for the year ending 31st March,2014
Please submit the working and the account not just the answer
I will be allotting BRAINLIEST ANSWER

Answer 1

Answer:

As per the Indian Partnership Act, 1932, Section 48, First payment will be made for Mrs. Vinod’s Loan for

Rs.20,000 and after that Kumar’s Loan will be paid upto the available amount only i.e. Rs.5,000.