The XYZ Associates has three partners, A, B and C. In the first half of year 1, to 30 June, 2019. Year 1, Partner A and Partner C each received an annual salary of Rs. 35,000. Residual profits or losses are shared between A, B and C in the ratio 4:3:2. (There is no interest on capital.) In the second half of the year, from 1 July to 31 December, 2019, Partner A’s salary was increased to Rs. 45,000, and the partners altered the profit-sharing ratio to 1:3:1 for A:B:C). The salary of Partner C was unchanged at Rs. 35,000 per year. The profit for the year was Rs. 230,000 (arising evenly throughout the year). Required: You are asked to prepare profit and loss appropriation account for the XYZ Associates and Show the necessary calculations and also explain them.
The XYZ Associates has three partners, A, B and C. In the first half of year 1, to 30 June, 2019. Year 1, Partner A and Partner C each received an annual salary of Rs. 35,000. Residual profits or losses are shared between A, B and C in the ratio 4:3:2. (There is no interest on capital.) In the second half of the year, from 1 July to 31 December, 2019, Partner A’s salary was increased to Rs. 45,000, and the partners altered the profit-sharing ratio to 1:3:1 for A:B:C).
The salary of Partner C was unchanged at Rs. 35,000 per year. The profit for the year was Rs. 230,000 (arising evenly throughout the year).
Required: You are asked to prepare
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