P, Q and Rare in a partnership and as at 1st April 2017 their respective capitals...

 

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P, Q and Rare in a partnership and as at 1st April 2017 their respective capitals were; Rs. 40,000, Rs. 30,000 and Rs. 30,000. Q is entitled to a salary of Rs. 6,000 and Rs. 4,000 p.a. payable before division of profits. Interest is allowed on capital @ 5% p.a. and is not charged on drawings. Of the divisible profits, P is entitled to 50% the first Rs. 10,000, Q to 30% and R to 20%, rest of the profits are shared equally. Profits for the year ended the 31st March 2018, after debiting partners' salaries but before charging interest on capital was Rs. 21,000 and the partners had drawn Rs. 10,000 each on account of salaries, interest and profit. Prepare Profit and Loss Appropriation Account for the year ended 31st March 2018 showing the distribution of profit and the Capital Accounts of the Partners. P, Q and Rare in a partnership and as at 1st April 2017 their respective capitals were; Rs. 40,000, Rs. 30,000 and Rs. 30,000. Q is entitled to a salary of Rs. 6,000 and Rs. 4,000 p.a. payable before division of profits. Interest is allowed on capital @ 5% p.a. and is not charged on drawings. Of the divisible profits, P is entitled to 50% the first Rs. 10,000, Q to 30% and R to 20%, rest of the profits are shared equally. Profits for the year ended the 31st March 2018, after debiting partners' salaries but before charging interest on capital was Rs. 21,000 and the partners had drawn Rs. 10,000 each on account of salaries, interest and profit. Prepare Profit and Loss Appropriation Account for the year ended 31st March 2018 showing the distribution of profit and the Capital Accounts of the Partners.

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