A, B and C were partners in a firm having capitals of Rs. 50,000; Rs. 50,000...
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A, B and C were partners in a firm having capitals of Rs. 50,000; Rs. 50,000 and Rs.1,00,000 respectively. Their Current Account balances were. A: Rs. 10,000; B: Rs. 5,000 and C: Rs. 2,000 (Dr.). According to the Partnership Deed the partners were entitled to an interest on Capital @ 10% p.a. C being the working partner was also entitled to a salary of Rs.12,000 p.a. The profits were to be divided as: (a) The first Rs.20,000 in proportion to their capitals. (b) Next Rs. 30,000 in the ratio of 5:3:2. (c) Remaining profits to be shared equally. The firm earned net profit of Rs.1,72,000 before charging any of the above items. Prepare Profit and Loss Appropriation Account and pass necessary Journal entry for the appropriation of profits. A, B and C were partners in a firm having capitals of Rs. 50,000; Rs. 50,000 and Rs.1,00,000 respectively. Their Current Account balances were. A: Rs. 10,000; B: Rs. 5,000 and C: Rs. 2,000 (Dr.). According to the Partnership Deed the partners were entitled to an interest on Capital @ 10% p.a. C being the working partner was also entitled to a salary of Rs.12,000 p.a. The profits were to be divided as: (a) The first Rs.20,000 in proportion to their capitals. (b) Next Rs. 30,000 in the ratio of 5:3:2. (c) Remaining profits to be shared equally. The firm earned net profit of Rs.1,72,000 before charging any of the above items. Prepare Profit and Loss Appropriation Account and pass necessary Journal entry for the appropriation of profits.
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Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
4th edition
Authors: David Haddock, John Price, Michael Farina
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