X and Y were partners in a firm sharing profits in the ratio of 3:2. on 1st April 2018 their fixed capitals were Rupees 200000 and rupees 240000 respectively. on 30th June 2018 decided that their total fixed capital should be rupees 500000. It was further decided that the capitals (fixed) should be in their profit sharing ratio. accordingly they introduced or withdrew the necessary capital. the partnership deed provided the following:
1) interest on capital at 10% per annum 2) interest on drawings at 12% per annum
3) monthly salary 2x at rupees 2000 per month and Y @ rupees 3000 per quarter.

drawings of X during the year was rupees 40000 and Y Rupees 30000. the current account balance of X was rupees 5000(Cr) and Y rupees 2600(Dr). the profit earned by the firm for the year 31-3-2019 was rupees 240000. you are required to prepare Profit and Loss appropriation account, capital account and current account

Dear student

Note:- As it is not mentioned when we're the drawings made, I assume that drawing were made in mid year.


  • 0
What are you looking for?