A and B are partners sharing profits and losses in the ratio of 2: 1 with capitals or Rs. 10,00,000 and Rs. 5,00,000 respectively on 1st April, 2021. Each partner is entitled to 8% p.a. interest on his capital. B is entitled to a salary of Rs. 3,500 p.m. together with a commission of 10% of Net Profit remaining after deducting interest on capitals and salary and after charging his commission. The profits for the year ended 31st March, 2022 prior to calculation of interest on capital but after charging salary of B amounted a to Rs. 4,50,000. Show the division of profit, Pass Journal Entries and Prepare Partner's Capital Accounts: (i) When capitals are fixed, and (ii) When capitals are fluctuating.
FULL FLEDGED SUMS (PROFIT & LOSS APPROPRIATION ACCOUNT AND CAPITAL ACCOUNT)