InterviewSolution
Saved Bookmarks
| 1. |
Simran and Reema are partners sharing profits in the ratio of 3 : 2. Their capitals as on 31st March, 2017 were ₹ 2,00,000 each whereas Current Accounts had balances of ₹ 50,000 and ₹ 25,000 respectively interest is to be allowed @ 5% p.a. on balances in Capital Accounts. The firm earned net profit of ₹ 3,00,000 for the year ended 31st March 2018. Pass the journal entries for interest on capital and distibution of profit. Also prepare Profit and Loss Appropriation Account for the year. |
|
Answer» tion:25,000 respectively INTEREST is to be ALLOWED @ 5% p.a. on BALANCES in CAPITAL Accounts. The firm earn...nicefollow me |
|