A. B & C were partners. Their fixed capitals were A 18,000, B12,000and

1.	A. B & C were partners. Their fixed capitals were A 18,000, B12,000and 6,000 respectively. According to the Partnership Deed, they wereentitled to an interest on capital at 5% p.a. In addition B was also entitled todraw a salary of 300 per month. C was entitled to a commission of 5% onthe profits after charging the interest on capital, but before charging the salarypayable to B. The net profits for the year were 18,000 distributed in theratio of capitals without providing for any of the above adjustments. The profitswere to be shared in the ratio of 5:2:3. Pass the necessary adjustmententry showing the working clearly.
Answer» Answer: A. B & C were partners. Their fixed CAPITALS were A 18,000, B12,000 and 6,000 respectively. According to the Partnership Deed, they were entitled to an interest on capital at 5% p.a. In addition B was ALSO entitled to draw a salary of 300 per month. C was entitled to a commission of 5% on the profits after charging the interest on capital, but before charging the salary payable to B. The net profits for the year were 18,000 distributed in the ratio of capitals without PROVIDING for any of the above adjustments. The profits were to be shared in the ratio of 5:2:3. PASS the necessary adjustment entry showing the working clearly.

A. B & C were partners. Their fixed capitals were A 18,000, B12,000and 6,000 respectively. According to the Partnership Deed, they wereentitled to an interest on capital at 5% p.a. In addition B was also entitled todraw a salary of 300 per month. C was entitled to a commission of 5% onthe profits after charging the interest on capital, but before charging the salarypayable to B. The net profits for the year were 18,000 distributed in theratio of capitals without providing for any of the above adjustments. The profitswere to be shared in the ratio of 5:2:3. Pass the necessary adjustmententry showing the working clearly.

Answer»

Answer:

A. B & C were partners. Their fixed CAPITALS were A 18,000, B12,000

and 6,000 respectively. According to the Partnership Deed, they were

entitled to an interest on capital at 5% p.a. In addition B was ALSO entitled to

draw a salary of 300 per month. C was entitled to a commission of 5% on

the profits after charging the interest on capital, but before charging the salary

payable to B. The net profits for the year were 18,000 distributed in the

ratio of capitals without PROVIDING for any of the above adjustments. The profits