Arti, Bharti, and Kirti are partners sharing profits and losses in the proportion of Arti 1/2, Bharti 3/10, Kirti 1/5 after providing for the interest @ 5% p.a.

on their respective capitals, Viz, Arti ₹ 50,000; Bharti ₹ 30,000 and Kirti ₹ 20,000 and allowing Bharti and Kirti a salary of ₹ 5,000 each per annum.

During the year ended 31st March 2023, Arti had drawn ₹ 10,000, and Bharti and Kirti in addition to their salaries had drawn ₹ 2,500 and ₹ 1,000 respectively.

Profit and Loss Account for the year ended 31st March 2023 showed a net profit of ₹ 45,000. On 1st April 2022, the balances in the current accounts of the partners were: Arti ₹ 4,500 (Cr.); Bharti ₹ 1,500 (Cr.) and Kirti ₹ 1,000 (Cr.) Interest is not charged on Drawings or Current Account balances.

Show the Partner’s Capital and Current Accounts as at 31st March 2023 after the division of profits.

Anurag Pathak Changed status to publish April 20, 2024
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