Pony, Sony, and Johny were in a partnership which they began on 1st April 2022 with capital contributions of ₹ 80,000; ₹ 55,600, and ₹ 31,800. Sony and Johny are entitled to draw salaries of ₹ 5,000 and ₹ 4,000 p.a. respectively before the division of profits.

Interest is allowed on the capitals @ 5% p.a. while it is not charged on drawings.

Of the net profit, the first ₹ 30,000 is divided in the ratio fo 40 : 35 : 25 among them respectively, and the balance is shared equally.

Profit for the year ended 31st March 2023 after debiting the partner’s salaries, but before charging interest on capital was ₹ 56,340 and the partners have drawn ₹ 26,000 each for personal use.

Prepare Profit and Loss Appropriation Account and Partner’s Capital Accounts for the year ended 31st March 2023.

Anurag Pathak Changed status to publish April 20, 2024
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