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A,B and C are partners sharing profits and losses in the ratio of 5:3:2. Their capital are Rs. 80,000,Rs.50,000 and Rs.40,000 respectively. Each partner is entitled to interest on capitals @ 10% p.a. B is entitled to a salary of Rs. 10,000 p.a. and C is entitled for commission of Rs.4,000 p.a.A guaranteed that the firm would earn a profits of Rs.1,20,000 before allowing interest on capital, partner salaries and commission. The actual profit for the year 2018 before commission, interest and salaries amounted to Rs.1,12,000. Prepare Profit and Loss Appropriation A/c. |
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Answer» CLOSING balance of MACHINERY A/c RS. 30,550 loss on sale of machine Rs.2,200 |
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