Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Prepare capital and Current account when capital are fixed and fluctuating A and B are partners Sharing profit and loss in the proportion of 3/5
Prepare capital and Current account when capital are fixed and fluctuating
A and B are partners Sharing profit and loss in the proportion of 3/5 and 2/5 respectively. The following trial balance was extracted from their books on 31 stmarch 2022 Additional information: a. The value of stock on 31st march 2022 was 12,500 b. Write off Ro. 250 for office furniture, 10% from plant and machinery and 20% from motor vans. c. Provide 5% on the sundry debtors for doubtful debts d. Write off 1/5 of adverting expenses e. Partners are entitled to interest on capital and drawings at 5% per annum and B is entitled to a salary of Ro. 1,800 per annum.in case of drawings interest is to be charged for full yearStep 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