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Don't answer if you don't know and within 10 minutes 6. Sarita and Vandana were partners in a firm sharing profits in the ratio of
Don't answer if you don't know and within 10 minutes
6. Sarita and Vandana were partners in a firm sharing profits in the ratio of their capitals contributed on commencement of business which were 34,00,000 and 33,00,000 respectively. The firm started business on April 1, 2013. According to the partnership agreement : (i) Every year 550,000 or 10% of the profit, whichever is more, will be donated for providing school fees of specially abled children. (ii) Interest on capital is to be allowed at 12% p.a. and interest on Drawings is to be charged at 10% p.a. (iii) Sarita and Vandana are to get a monthly salary of 10,000 and $15,000 respectively. The profits for year ended March 31, 2014 before making above appropriations was 36,00,000. The drawings of Sarita and Vandana were $2,00,000 and $2,50,000, respectively. Interest on drawings amounted to $10,000 for Sarita and 12,500 for Vandana. You are required to : (i) Identify the value being highlighted in this case; (ii) Prepare Profit and Loss Appropriation Account and Partners Capital Accounts assuming that their capitals are fluctuatingStep by Step Solution
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