3. Mr Hari and Mr. Giri are partners with Capital of Rs.40,000 and Rs.24,000 respectively, On 1st January 2020. The Partnership deed consists of the following conditions: a) Interest on Capital at 5% percent per annum; Interest on drawings at 4% per annum; b) c) Mr. Hari gets a salary of Rs.400 per month; d) Mr. Giri gets a commission of 10% on net profit. The net profit of the firm for the year ending 31-12-2020 amounted to Rs.20,500. The drawings of the partners are-Mr. Hari Rs:2,400 and Mr. Giri Rs.1,600. Prepare Profit and Loss Appropriation account and Capital accounts of the Partners assuming capitals are fluctuating.

3. Mr Hari and Mr. Giri are partners with Capital of Rs.40,000 and Rs.24,000 respectively, On 1st January 2020. The Partnership deed consists of the following conditions: a) Interest on Capital at 5% percent per annum; Interest on drawings at 4% per annum; b) c) Mr. Hari gets a salary of Rs.400 per month; d) Mr. Giri gets a commission of 10% on net profit. The net profit of the firm for the year ending 31-12-2020 amounted to Rs.20,500. The drawings of the partners are-Mr. Hari Rs:2,400 and Mr. Giri Rs.1,600. Prepare Profit and Loss Appropriation account and Capital accounts of the Partners assuming capitals are fluctuating.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 2PA: Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances...

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