FIXED AND FLUCTUATING CAPITALS Q14 Sharma and Varma entered into a partnership on-4-2012) on the following terms Sharma and Varma to bring in 2 50,000 and 7 40,000 respectively as capital. Capito (ii) Share the profits and losses in 2 : 3 ratio.. mout (iii) Interest on capital is allowed at 5% (iv) Interest on drawings is charged at 6% for the whole year. 2013-3- Sharma to get a salary of 5,000 p.a 12 2012-4-1(vi) Varma to get a commission of 3% on divisible profits. A or the year ended 31-3-2013 their business resulted in a net profit of 2 (55,600) before the above adjustments. Their drawings during the year amounted to 5,000 and 8,000 respectively. Prepare profit and loss appropriation account and the accounts of partners under fixed Oct./Nov.-14, Q12(b)(OU) capitals methods. (Refer Similar Q20) (Ans: Net Profit 44,822/Sharma's Capital 50,000, Varma's Capital 40,000 Sharma's Current Account 20,279, Varma's Current Account 22,321). SIA PUBLISHERS AND DISTRIBUTORS PVT.LTD. 54