[CBSE]Q. 5 solution of Fundamentals of Partnership Firms DK Goel (2022-23)

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Solution to Question number 5 of the Fundamentals of partnership firm chapter DK Goel Book 2022-23

A and B started a partnership business on 1st April, 2021. They contributed ₹ 6,00,000 and ₹ 4,00,000 respectively, as their capitals. The terms of the partnership agreement are as under:

(i) Interest on capital and drawings @ 6% per annum.

(ii) B is to get a monthly salary of ₹ 2,500.

(iii) Sharing of profit or loss will be in the ratio of their capital contribution.

The profit for the year ended 31st March, 2022, before making above appropriations was ₹ 2,07,400. The drawings of A and B were ₹ 48,000 and ₹ 40,000 respectively. Interest on drawings amounted to ₹ 1,500 for A and ₹ 1,100 for B.

Prepare Profit and loss appropriation account and partner’s capital accounts assuming that their capitals are fluctuating.

[Ans. Divisible Profits ₹ 1,20,000; A’s Capital Balance ₹ 6,58,500 and B’s Capital Balance ₹ 4,60,900.]

Solution:-

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