DK Goel Solutions Q 74 Chapter 1 Accounting for Partnership Firms-Fundamentals Class 12 CBSE [2023-24]

A, B and C were in partnership sharing profits in the ratio of 1 : 2 : 3. Their fixed capitals on 1st April, 2021 were : A ₹ 3,00,000; B ₹ 4,50,000 and C ₹ 10,00,000. Their partnership deed provided for the following :

1. (i) A provides his personal office to the firm for business use charging yearly rent of ₹ 1,50,000.
2. (ii) Interest on capital @ 8% p.a. and interest on drawings @ 10% p.a.
3. (iii) A was allowed salary @ ₹ 10,000 per month.
4. (iv) B was allowed a commission of 10% of net profit as shown by Profit & Loss Account, after charging such commission.
5. (v) C was guaranteed a profit of ₹ 3,00,000 after making all the adjustments.

The net profit of the firm for the year ended 31st March, 2022 was ₹ 10,30,000 before making above adjustments.

You are informed that A has withdrawn ₹ 5,000 at the beginning of each month, B has withdrawn ₹ 5,000 at the end of each month and C has withdrawn ₹ 24,000 at the beginning of each quarter.

Prepare Profit and Loss Appropriation Account and Partner’s Current Accounts.