prepare the profit and loss appropriation and capital accounts

Questions Bank 3/3 m 2. Mahesh and Ramesh are partners sharing profits in the ratio of 3:2 213 R with capitals of R.O 50,000 and R.O.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 R.O 15.000 and R.Q 10,000, the interest for Mahesh R.O 750 and for Ramesh R.O 500. Mahesh is entitled to a salary of R.Q 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 R.O 60,000 for the year ended 31st March, 2005.Prepare the profit and loss appropriation account and capital Accounts