Question
Nadeem, Qadeer, and Akram commenced a partnership business on 1.1.2016. They contributed Rs.415000, Rs. 280000, Rs. 220000 respectively as their capitals and decided to share
Nadeem, Qadeer, and Akram commenced a partnership business on 1.1.2016. They contributed Rs.415000, Rs. 280000, Rs. 220000 respectively as their capitals and decided to share profit and loss in the ratio of 3:2:1. The partnership deed provided that Kaleem should be paid a salary of 4000 per month and Akram a commission of Rs.15000 per year. It also provided that interest on capital be allowed at 12% per annum. The drawings for the year were Nadeem Rs. 10000, Qadeer Rs. 7000 and Akram Rs.6000. Interest on drawings to be charged Rs.1050 on Nadeem`s Drawings Rs.7000 on Qadeer`s drawings and Rs.550 on Akram`s drawings. The net amount of profit as per profit and loss account for the year 2015 was Rs.295000. You are required to prepare a profit and loss appropriation account and the partner`s capital accounts(a)if they are fixed. (b)if they are fluctuating
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