Ram and Rahim start business with capital of INR. 50,000 and 30,000 on 1st January, 2016. Rahim is entitled to a salary of INR. 400 per month. Interest is allowed on capitals and is charged on drawings at 6% per annum. Profits are to be distributed equally after the above noted adjustments. During the year, Ram withdrew INR. 8,000 and Rahim withdrew INR. 10,000. The profit for the year before allowing for the terms of the Partnership Deed came to INR. 30,000. Assuming the capitals to be fixed, prepare the Profit and Loss Appropriation Account and prepare the Capital and Current Accounts of Ram and Rahim. Based on these Accounts information, answer the below mentioned questions. Profit transferred to Ram's Current Account.......... a. 12,570 b. 10,470 c. 11,350 d. 9,575 Question 2 Profit transferred to Rahim's Current Account........ a. 10,470 b. 11,342 c. 9,575 d. 12,570 Question 3 Ram's Capital Account Balance....... a. 40,000 b. 45,500 c. 47,700 d. 50,000 Question 4

Ram and Rahim start business with capital of INR. 50,000 and 30,000 on 1st January, 2016. Rahim is entitled to a salary of INR. 400 per month. Interest is allowed on capitals and is charged on drawings at 6% per annum. Profits are to be distributed equally after the above noted adjustments. During the year, Ram withdrew INR. 8,000 and Rahim withdrew INR. 10,000. The profit for the year before allowing for the terms of the Partnership Deed came to INR. 30,000. Assuming the capitals to be fixed, prepare the Profit and Loss Appropriation Account and prepare the Capital and Current Accounts of Ram and Rahim. Based on these Accounts information, answer the below mentioned questions. Profit transferred to Ram's Current Account.......... a. 12,570 b. 10,470 c. 11,350 d. 9,575 Question 2 Profit transferred to Rahim's Current Account........ a. 10,470 b. 11,342 c. 9,575 d. 12,570 Question 3 Ram's Capital Account Balance....... a. 40,000 b. 45,500 c. 47,700 d. 50,000 Question 4

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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