A, B and C are in partnership sharing profits and losses in the ratio of 5:3:2. On 1st Jan 2017, their capital balances are: RO A 75000 B 45000 C 30000 The terms of partnership provide that: All partners are eligible for interest on capital @5% All partners are liable to pay interest on drawings @ 6% Partner A is eligible for salary @ RO 150 per month The net profit for the year ended 31st December, 2017 before making the above terms was RO 46400. The drawings of the partners were: RO A 6000 B 4000 C 2000 You are required to prepare: - Profit and Loss Appropriation Account Capital accounts of three partners under fluctuating capital method.
A, B and C are in partnership sharing profits and losses in the ratio of 5:3:2. On 1st Jan 2017, their capital balances are: RO A 75000 B 45000 C 30000 The terms of partnership provide that: All partners are eligible for interest on capital @5% All partners are liable to pay interest on drawings @ 6% Partner A is eligible for salary @ RO 150 per month The net profit for the year ended 31st December, 2017 before making the above terms was RO 46400. The drawings of the partners were: RO A 6000 B 4000 C 2000 You are required to prepare: - Profit and Loss Appropriation Account Capital accounts of three partners under fluctuating capital method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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- A, B and C are in
partnership sharing profits and losses in the ratio of 5:3:2. On 1st Jan 2017, their capital balances are: RO
A 75000
B 45000
C 30000
The terms of partnership provide that:
- All partners are eligible for interest on capital @5%
- All partners are liable to pay interest on drawings @ 6%
- Partner A is eligible for salary @ RO 150 per month
The net profit for the year ended 31st December, 2017 before making the above terms was RO 46400.
The drawings of the partners were: RO
A 6000
B 4000
C 2000
You are required to prepare: -
-
Profit and Loss Appropriation Account - Capital accounts of three partners under fluctuating capital method.
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