Question

X & Y are Partners commenced Partnership business on 1.04.2019, sharing profits & losses in 3:2 ratio
with capitals of ₹ 1,00,000 and ₹ 80,000 respectively. They earned profits of ₹ 15,000 for the year before

allowing:

a) Interest on Capitals @ 10% p.a.

b) Interest on drawings: X ₹ 1,000 & Y ₹ .800

c) Commission payable to X ₹ 2000

d) Salary payable to Y ₹ 3000

Prepare P & L Appropriate A/c for the year ending 31.03.2020.​

Answer 1

Answer:

loss =6, 200

Explanation:

in case of insufficient profit either

all the appropriations are done on the basis of capital ratio or we can distribute them by making loss