Simran and Puneet are partners sharing profits equally. Their capitals as at 1st April 2022 stood at ₹ 5,00,000 and ₹ 4,00,000 respectively
Simran and Puneet are partners sharing profits equally. Their capitals as at 1st April 2022 stood at ₹ 5,00,000 and ₹ 4,00,000 respectively. The partners are allowed interest on capital @ 9% p.a. Drawings of Simran and Puneet were ₹ 1,00,000 and ₹ 80,000 respectively and interest on drawings being ₹ 5,000 and ₹ 4,000 respectively.
Net Profit for the year was ₹ 2,50,000. How much amount will be transferred to Workmen Compensation Reserve, When:
(a) 10% of the net profit is to be transferred; and
(b) 10% of the distributable profit is to be transferred?
Anurag Pathak Changed status to publish April 20, 2024
