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On 1 January 2010, Luis and Henry entered into a partnership contributing $140,000 and $100,000 respectively and sharing profits in the ratio of 2:1. Luis
On 1 January 2010, Luis and Henry entered into a partnership contributing $140,000 and $100,000 respectively and sharing profits in the ratio of 2:1. Luis is to be allowed a salary of $16,000 per year. Interest on capital is to be allowed at 10% per annum. Henry is entitled to receive a commission of $14,000. During the year, Luis withdrew $16,000 and Henry $19,000; interest on the same being 12% per annum. Profit in 2010 before the above mentioned adjustments was $110,000. Prepare the Profit and Loss Appropriation Account and the Partners' Capital Accounts. 7 A BI ES % DI
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