Amit, Binita and Charu are three partners. On 1st April, 2017, their Capitals stood as: Amit ₹ 1,00,000, Binita ₹ 2,00,000 and Charu ₹ 3,00,000. It was decided that:(a) they would receive interest on Capital 5% p.a.,(b) Amit would get a salary of ₹ 10,000 per month,(c) Binita would receive commission 5% of net profit after deduction of commission, and(d) 10% of the net profit would be transferred to the General Reserve.Before the above items were taken into account, the profit for the year ended 31st March, 2018 was ₹ 5,00,000. Prepare Profit and Loss Appropriation Account and the Capital Accounts of the partners.

Amit, Binita and Charu are three partners. On 1st April, 2017, their C

1.	Amit, Binita and Charu are three partners. On 1st April, 2017, their Capitals stood as: Amit ₹ 1,00,000, Binita ₹ 2,00,000 and Charu ₹ 3,00,000. It was decided that:(a) they would receive interest on Capital 5% p.a.,(b) Amit would get a salary of ₹ 10,000 per month,(c) Binita would receive commission 5% of net profit after deduction of commission, and(d) 10% of the net profit would be transferred to the General Reserve.Before the above items were taken into account, the profit for the year ended 31st March, 2018 was ₹ 5,00,000. Prepare Profit and Loss Appropriation Account and the Capital Accounts of the partners.
Answer» Amit, Binita and Charu are three partners. On 1st April, 2017, their Capitals stood as: Amit ₹ 1,00,000, Binita ₹ 2,00,000 and Charu ₹ 3,00,000. It was decided that: (a) they would receive interest on Capital 5% p.a., (b) Amit would get a salary of ₹ 10,000 per month, (c) Binita would receive commission 5% of net profit after deduction of commission, and (d) 10% of the net profit would be transferred to the General Reserve. Before the above items were taken into account, the profit for the year ended 31st March, 2018 was ₹ 5,00,000. Prepare Profit and Loss Appropriation Account and the Capital Accounts of the partners.

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