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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 15, 2023