4Gll 8:24 PM 88% Question 2(1).pdf .A, B &C are three parters in a p. tnership fim since 1.1.1988. They are staring profits and losses equally, According to the partnership agreement, inicrst an drawings is to be charged at the rate of 10% pa. Drawings made by the partners dung the ycar 1988 are as follows: Dete (Rs) (Ra) January 1 (Ra) 5,000 3,000 2,000 April 1 September) 3,000 2,000 3,000 5,000 4,000 2,000 December ) 2,000 1,000 1,000 The profits for the year amount to Rs 30,000. You are required to compute the interest on drawings recoverable from the partners and prepare the Profit & Loss Appropriation Account showing the distribution of profits among the partners.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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