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Q. 4 A, B and C were partners in a firm sharing profits and losses in the ratio of 3: 3:4. On 1st April 2017 the balances in their Capital and Current Accounts were as followsCapital Accountscurrent AccountA: 400000 cr. 20000 dr.B: 500000 cr. 10000 dr.C: 600000 cr. 15000 dr. respectively. Their Partnership Deed provided for the following:(1) Interest on Capital @ 9.pa.(2) Salary to A @ 50,000 per quarter.On 1st January 2016, C had given a loan of 200000 to the firm at 6% per annum interestDuring the year their drawings were A = 40000 , B =75000 and C= 55000 .On 1st January,2018. A introduced further capital 200000 .The net profit of the firm before allowing intereston C's loan was 400000.Prepare Profit and Loss Appropriation Account of the firm for the year ending 31st March,2018 and the Current Accounts of the partners.​

Answer»

a firm sharing profits and losses in the ratio of 3: 3:4. On1st April 2017 the balances in their Capital and Current Accounts were as followsCapital Accountscurrent AccountA: 400000 cr.20000 dr.B: 500000 cr.10000 dr.C: 600000 cr.15000 dr.respectively. Their Partnership DEED provided for the following:(1) Interest on Capital @ 9.pa.(2) SALARY to A @ 50,000 per quarter.On 1st January 2016, C had GIVEN a loan of 200000 to the firm at 6% per annum interestDuring the year their drawings were A = 40000 , B =75000 and C= 55000 .On 1st January,2018. A introduced further capital 200000 .



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