Question : Saleem, Kaleem and Arif commenced a partnership business on 1.1.2018. They contributed Rs.440000, Rs. 300000,
Question:
Question :
Saleem, Kaleem and Arif commenced a partnership business on 1.1.2018. They contributed Rs.440000, Rs. 300000, Rs. 220000 respectively as their capitals and decided to share profit and loss in the ratio of 3:2:1. The partnership deed provided that Kaleem should be paid a salary of 5000 per month and Arif a commission of Rs.12000 per year. It also provided that interest on capital be allowed at 11% per annum. The drawings for the year were Saleem Rs. 10000, Kaleem Rs. 7000 and Arif Rs.6000. Interest on drawings to be charged Rs.1050 on Saleem`s Drawings Rs.700 on Kaleem`s drawings and Rs.550 on Arif`s drawings. The net amount of profit as per profit and loss account for the year 2015 was Rs.295000. You are required to prepare profit and loss appropriation account and the partner`s capital accounts.
