A and B into partnership. As per Partnership Deed: (a) A to receive a Salary of $ 1,000 per month. (b) B to be allowed a commission of $ 1,000. (c) Interest on A's Loan to the firm, to be fixed at 12% p.a. (d) Rent of $ 4,000 is payable to B (e) Profit sharing ratio amongst A and B should be 1:1. A has given $ 10,000 to the firm as loan on 1.7.2014 and trading profits of the firm for the year 2014 was $ 32,500. Show the distribution of Profits

A and B into partnership. As per Partnership Deed: (a) A to receive a Salary of $ 1,000 per month. (b) B to be allowed a commission of $ 1,000. (c) Interest on A's Loan to the firm, to be fixed at 12% p.a. (d) Rent of $ 4,000 is payable to B (e) Profit sharing ratio amongst A and B should be 1:1. A has given $ 10,000 to the firm as loan on 1.7.2014 and trading profits of the firm for the year 2014 was $ 32,500. Show the distribution of Profits

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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