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On 1st April, 2014, Precious, Noble and Perfect entered into partnershipwith capitals of 60,000; 50,000 and 30,000 respectively.Perfect advanced 10,000 as loan to the partnership on 1st October, 2014. ThePartnership Deed contained the following clauses :(i) Interest on capitals @ 6% p.a.(ii) Interest on drawings @ 6% p.a. Each drew 4,000 at the end of eachquarter commencing from 30th June, 2014.(iii) Working partners Precious and Noble to get salaries of 200 and 300per month.(iv) Interest on loan was given to Perfect @6% p.a.(v) Profits and losses are to be shared in the ratio of 4:2:1 up to 70,000and above 70,000 equally.Net profit of the firm for the year ended 31st March, 2015 (before aboveadjustments) was 1,11,000.Prepare Profit and Loss Appropriation Account and Personal Accounts of thePartners assuming capitals to be fixed. |
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Answer» Answer: Answer: 2. (Ans. Realisation Profit to A 73,000 and B 21,000, TOTAL Profit - 240.000 Verma and Sharma were partners sharing profits in the ratio of 3 1. On 31-3-2011 their BALANCE Sheet was as follows: Balance Sheet of Verma & Sharma (as at 31.3.2011) Liabilities Assets Amount ₹ Amount 3 70.000 Capital : Verma Sharma Creditors Land and BUILDING 1,20,000 80.000 2,00.000 Debtors 70.000 Bank 2.70.000 80.000 60.000 2.70.000 The firm was DISSOLVED on 1-4-2011 and the Assets and Liabilities were setties follows: (i) Creditors of 50.000 took over Land and Building in full settlement of their claim. (ii) Remaining Creditors were paid in cash. (iii) Machinery was sold at a depreciation of 30% (iv) Debtors were collected at a cost of 500 (v) Expenses of realisation were 1.700. |
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