Sukesh and Vanita were partners in a firm. Their partnership agreement provides that:
Sukesh and Vanita were partners in a firm. Their partnership agreement provides that:
(i) Profits would be shared by Sukesh and Vanita in the ratio of 3 : 2;
(ii) 5% interest is to be allowed on capital:
(iii) Vanita should be paid a monthly salary of ₹ 600.
The following balances are extracted from the books of the firm, on March 31, 2017.
|  | Sukesh (₹) | Vanita (₹) |
|
Capital Accounts Current Accounts Drawings |
40,000 (Cr.) 7,200 10,850 |
40,000 (Cr.) 2,800 8,150 |
Net profit for the year, before charging interest on capital and after charging Sukesh’s salary was ₹ 9,500. Prepare the Profit and Loss Appropriation Account and the Partner’s Current Accounts.
[Ans: Profit transferred to Sukesh’s Capital, ₹ 3,300 and Vanita’s Capital, ₹ 2,200] 
Anurag Pathak Changed status to publish March 24, 2024
