3. A and B are partners in a firm sharing profits and losses in the ratio of 4: 1. On 1* April 2010, the Capital of the partners are :A- Rs 50,000 and B- Rs 40,000. The Profit and Loss Account of the firm for the year ended 31st March. 2011 showed a net profit of Rs 1,75,000. You are required to give the Profit and Loss Appropriation Account of the firm after taking into consideration the following: (i) Interest on Capital at 5% p.a. (ii) Interest on B's Loan Account of Rs 50,000 for the whole year._ (iii) Interest on, drawings of partners at 6% p.a. Drawings of A Rs 15,000; B Rs 10,000. s (iv) Transfer 10% of the distributable profit, before distribution to the Reserve Fund of the firm.

3. A and B are partners in a firm sharing profits and losses in the ratio of 4: 1. On 1* April 2010, the Capital of the partners are :A- Rs 50,000 and B- Rs 40,000. The Profit and Loss Account of the firm for the year ended 31st March. 2011 showed a net profit of Rs 1,75,000. You are required to give the Profit and Loss Appropriation Account of the firm after taking into consideration the following: (i) Interest on Capital at 5% p.a. (ii) Interest on B's Loan Account of Rs 50,000 for the whole year._ (iii) Interest on, drawings of partners at 6% p.a. Drawings of A Rs 15,000; B Rs 10,000. s (iv) Transfer 10% of the distributable profit, before distribution to the Reserve Fund of the firm.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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