Assignment X and Y are partners sharing profit and loss in the ratio of 7:3. their capital accounts as at ist April 2019 stood at X rupees 5 00000, Y Rupees 400000. partners are allowed interest on capital at the rate of 5% per annum. drawings of X and Y during the year ended 31st March 2020 Rs. 72000 and 50000 respectively. profit for the year before allowing interest on capital and salary to Y at the rate of rupees 5000 per month was rupees 8,00,000. 10% of the divisible profit is to be set aside as General reserve. Prepare profit and loss appropriation account.

Assignment X and Y are partners sharing profit and loss in the ratio of 7:3. their capital accounts as at ist April 2019 stood at X rupees 5 00000, Y Rupees 400000. partners are allowed interest on capital at the rate of 5% per annum. drawings of X and Y during the year ended 31st March 2020 Rs. 72000 and 50000 respectively. profit for the year before allowing interest on capital and salary to Y at the rate of rupees 5000 per month was rupees 8,00,000. 10% of the divisible profit is to be set aside as General reserve. Prepare profit and loss appropriation account.

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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