Balance of Profit and Loss Appropriation capitals : X 23.100 Y 11.670 and 25.730, Z's commission 2.000) Ram and Shyam are partners in the ratio of 3: 2 with capitals of  7,500 and *6.500 respectively on which interest is payable @5% per annum. Shyam is entitled to a salary of 1.200 per annum which he has not withdrawn. Ram and Shyam withdrew * 1.500 and 800 respectively. The profit of the firm before writing interest on capital but after writing salary to Shyam amounted to 13,500 it is decided to provide 1.500 in connection with a legal proceeding pending? The contingency reserve is to be created for 2,000. The manager is entitled to a commission of 5% on profits (before charging such commission). Prepare the Profit and Loss Account and partner's capital accounts. (Ans. Net Profit 8,835 out of which Ram will get 5,301 and Shyam 3,534, Manager's Commission 465, Balance of Ram's Capital Account 11,676 and Shyam's Capital Account 10,759) firm sharing profit and losses in the ratio.