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A,B and C are partners in a firm. Their capital accounts as on 1.1.2016were 1,00,000, 50,000 and 30,000 respectively. They are sharing profits and losses equally. Interest on capital is allowed at 12% p.a. On 1.7.2016, he partners decided that their capital should be 50,000 each. The necessary adjustment in the capital are to be made by introducing orwithdrawing cash. Profit for the year ended on 31.12.2009 before charging interest on capital amounts to 50,000. You are required to prepare a Profit & Loss Appropriation Account showing the distribution of profit among the partners. |
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