A and B are partners sharing profits and losses in the ratio of 3 : 1. On 1st April, 2017, their capitals were: A ₹ 50,000 and B ₹ 30,000. During the year ended 31st March, 2018 they earned a net profit of ₹ 50,000. The terms of partnership are:(a) Interest on capital is to allowed 6% p.a.(b) A will get a commission 2% on turnover.(c) B will get a salary of ₹ 500 per month.(d) B will get commission of 5% on profits after deduction of all expenses including such commission.Partners' drawings for the year were: A ₹ 8,000 and B ₹ 6,000. Turnover for the year was ₹ 3,00,000. After considering the above facts, you are required to prepare Profit and Loss Appropriation Account and Partners' Capital Accounts.

A and B are partners sharing profits and losses in the ratio of 3 : 1.

1.	A and B are partners sharing profits and losses in the ratio of 3 : 1. On 1st April, 2017, their capitals were: A ₹ 50,000 and B ₹ 30,000. During the year ended 31st March, 2018 they earned a net profit of ₹ 50,000. The terms of partnership are:(a) Interest on capital is to allowed 6% p.a.(b) A will get a commission 2% on turnover.(c) B will get a salary of ₹ 500 per month.(d) B will get commission of 5% on profits after deduction of all expenses including such commission.Partners' drawings for the year were: A ₹ 8,000 and B ₹ 6,000. Turnover for the year was ₹ 3,00,000. After considering the above facts, you are required to prepare Profit and Loss Appropriation Account and Partners' Capital Accounts.
Answer» A and B are partners sharing profits and losses in the ratio of 3 : 1. On 1st April, 2017, their capitals were: A ₹ 50,000 and B ₹ 30,000. During the year ended 31st March, 2018 they earned a net profit of ₹ 50,000. The terms of partnership are: (a) Interest on capital is to allowed 6% p.a. (b) A will get a commission 2% on turnover. (c) B will get a salary of ₹ 500 per month. (d) B will get commission of 5% on profits after deduction of all expenses including such commission. Partners' drawings for the year were: A ₹ 8,000 and B ₹ 6,000. Turnover for the year was ₹ 3,00,000. After considering the above facts, you are required to prepare Profit and Loss Appropriation Account and Partners' Capital Accounts.

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