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A B and C are in partnership sharing profits and losses in the ratio of 3:2:1. On 1st Jan 2019, their capital balances are:    A 30,000        B 20,000         C 10,000 The terms of partnership provides that All partners are eligible for interest on capital @6% All partners are liable to pay interest on drawings @ 4% All Partners are eligible for salary @ RO 200 per month The net profit for the year ended 31st Dec 2019 before making the above terms was 18,000. The drawings of the partners were:       A 3,000           B 2,000           C 1,000 You are requested to prepare Profit and Loss Appropriations Account Capital accounts of three partners under fluctuating capital method

A B and C are in partnership sharing profits and losses in the ratio of 3:2:1. On 1st Jan 2019, their capital balances are:    A 30,000        B 20,000         C 10,000 The terms of partnership provides that All partners are eligible for interest on capital @6% All partners are liable to pay interest on drawings @ 4% All Partners are eligible for salary @ RO 200 per month The net profit for the year ended 31st Dec 2019 before making the above terms was 18,000. The drawings of the partners were:       A 3,000           B 2,000           C 1,000 You are requested to prepare Profit and Loss Appropriations Account Capital accounts of three partners under fluctuating capital method

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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Homework Activity 2

A B and C are in partnership sharing profits and losses in the ratio of 3:2:1. On 1st Jan 2019, their capital balances are:    A 30,000        B 20,000         C 10,000

The terms of partnership provides that

  1. All partners are eligible for interest on capital @6%
  2. All partners are liable to pay interest on drawings @ 4%
  3. All Partners are eligible for salary @ RO 200 per month

The net profit for the year ended 31st Dec 2019 before making the above terms was 18,000. The drawings of the partners were:       A 3,000           B 2,000           C 1,000

You are requested to prepare

  1. Profit and Loss Appropriations Account
  2. Capital accounts of three partners under fluctuating capital method
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