Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / P Q and R are partners in a firm sharing profit and losses in the ratio

P Q and R are partners in a firm sharing profit and losses in the ratio

P, Q and R are partners in a firm sharing profit and losses in the ratio of P 5/10, Q 3/10 and R 2/10. Their capital accounts at the beginning of the year were P: Rs 30,000, Q: Rs25,000 and R: Rs 10,000. According to partnershipdeed

 (i)  P is entitled for a salary of Rs 400 permonth.

(ii) Interest on capital and drawing is 10% perannum.

(iii) R is entitled for a commission of Rs 200 per month.

The profit for the year after deducting the commission of R was Rs78,000. The partners made the drawings as P: Rs 1400/-and Q: Rs 1,000/- during the year.

 You are required to prepare a profit and loss adjustment account showing how the profit is being distributed among the partners for the year.

Apr 17 2018 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions