# Black and white are partners with capital of rs 30000 and rs 20000. profits for the year ended 31st march 2011 amounted to rs. 27100. it is agreed that 5 % interest on capital as such shall be allowed . there is no agreement regarding sharing of profits or partnership salary. black is a whole time partner whereas white does not attend business regularly . black claims rs. 600 salary per month and 60% of balance profits. white advanced rs.10000 as loan and he now claims 10% interest.State how will you settle the accounts.( interest on capital @ 5% = black - 1500, white= 1000interst on loan @ 6 % = white - 600Residue of profit equally = black - 12000, white - 12000 )

 Profit and Loss Appropriation Accountfor the year ended March 31, 2011 Dr. Cr. Particulars AmountRs Particulars AmountRs Interest on Capital A/c:BlackWhite 1,5001,000 2,500 Profit and Loss A/c(Net Profit) 27,100 Interest on White’s Loan 600 Profit transferred to:Black’s CapitalWhite’s Capital 12,00012,000 24,000 27,100 27,100

* As the partnership deed is silent regarding the distribution of profits, so profits should be distributed equally between the partners.

* Also, as the partnership deed is silent regarding the salary, so no salary should be given to any partner.

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interest on capital will be allowed to both the partners @5% as per the agreement. interest on loan will be @6%. No salary would be allowed to Black and profit will shared equally by the partners.

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hey..can you tell me the complete method to do this ?

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