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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Homework Activity 2
AB and C are in partnership sharing profits and losses in the ratio of 3:2:1. On 1* Jan 2019, their
В 20,000
capital balances are: A 30,000
C 10,000
The terms of partnership provides that
a. All partners are eligible for interest on capital @6%
b. All partners are liable to pay interest on drawings @ 4%
c. All Partners are eligible for salary @ RO 200 per month
The net profit for the year ended 31s* 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
I.
Profit and Loss Appropriations Account
II.
Capital accounts of three partners under fluctuating capital method
Transcribed Image Text:Homework Activity 2 AB and C are in partnership sharing profits and losses in the ratio of 3:2:1. On 1* Jan 2019, their В 20,000 capital balances are: A 30,000 C 10,000 The terms of partnership provides that a. All partners are eligible for interest on capital @6% b. All partners are liable to pay interest on drawings @ 4% c. All Partners are eligible for salary @ RO 200 per month The net profit for the year ended 31s* 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 I. Profit and Loss Appropriations Account II. Capital accounts of three partners under fluctuating capital method
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