Varun and Vivek were partners in a firm sharing profits in the ratio of 3:2. The balance in their capital and current accounts as on 1st April, 2022 were as under:
| Particulars | Varun(₹) | Vivek(₹) |
|---|---|---|
| Capital accounts | 3,00,000 (Cr.) | 2,00,000 (Cr.) |
| Current accounts | 1,00,000 (Cr.) | 28,000 (Dr) |
The partnership deed provided that Varun was to be paid a salary of ₹5,000 p.m. whereas Vivek was to get a commission of ₹30,000 for the year. Interest on capital was to be allowed @ 8% p.a. whereas interest on drawings was to be charged @ 6% p.a.
The drawings of Varun were ₹3,000 at the beginning of each quarter while Vivek withdrew ₹30,000 on 1st September, 2022. The net profit of the firm for the year, 2022-23, before making the above adjustments was ₹1,20,000.
Prepare Profit and Loss Appropriation Account and Partners’ Capital and Current Accounts.
Mark-6, CBSE: 2024-25/Sample/Q-24*
Answer :
