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(2) I Year Loss Rs. 10,000 II Year Profit Rs. 26,000 Ill Year Profit Rs. 34,000 IV Year Profit Rs. 50,000 Q. 5. Mahesh and Ramesh are partners sharing profits in the ratio of 3:2 with capitals of Rs.50,000 and Rs. 40,000 respectively. Interest on capital is agreed at 8% p.a. Interest on drawings is fixed at 10% p.a. The drawings of the partners were Rs. 15,000 and Rs. 10,000, the interest for Mahesh Rs. 750 and for Ramesh Rs. 500. Mahesh is entitled to a salary of Rs. 12,000 p.a. and Ramesh is entitled to get a commission of 10% on the Net Profit before charging such commission. The Net Profit of the firm before making the above adjustments was Rs.60,000 for the year ended 31st March, 2020. Prepare the profit and loss appropriation account. (4) Q 6. Anita & Vanita are partners in a firm sharing profits and losses in the ratio of 3:1 as on 31st March 2020. Their Balance Sheet was as under: Balance Sheet as on 31/03/2020 Liabilities Assets Creditors 60,000 Bank Balance 5,000 Bills payable 20,000 Debtors 70,000 General Reserve 40,000 Stock 30,000 Capitals : Machinery 25,000 Anita 80,000 Building 1,00,000 Vanita 40,000 Profil and Loss a/c 10,000 Total Total 2,40,000 2,40,000 On 1st April 2020, they agreed to admit Kavita into the firm for 1/5th Share of future profits on the following terms: a) Building is revalued at Rs. 1,20,000 b) Stock is revalued at Rs.21,500 c) Goodwill is raised at Rs.40,000 d) Provision for bad debts is made at 5% e) Kavita to bring in a Capital of Rs. 50,000 Prepare: Revaluation Account (1 34 ) (ii) Partners Capital Account (3 34 ) (iii) Balance sheet of the new firm (4 1/2 ) 7