Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need the answer as soon as possible 12. The partnership agreement of Maneesh and Girish provides that (i) Profits will be shared equally. (ii)
I need the answer as soon as possible
12. The partnership agreement of Maneesh and Girish provides that (i) Profits will be shared equally. (ii) Maneesh will be allowed a salary of 400 p.m. (iii) Girish who manages the sales department will be allowed a commission equal to 10% of the net profit after allowing Maneesh's salary. (iv) 7% interest will be allowed on partner's fixed capital. (v) 5% interest will be charged on partner's annual drawings. (vi) The fixed capitals of Maneesh and Girish are 1,00,000 and $80,000 respectively. Their annual drawings were 16,000 and 14,000 respectively. The net profit for the year ending March 31, 2016 amounted to 40,000. Prepare firm's Profit and Loss Appropriation AccountStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started