Q.No.5 Mr. A and Mr. B start a business on 01st June ,2021, with capital of 2,570,000 and 800,000. According to agreement Mr. A is entitled for a salary of 250,000 whereas another partner is entitled for Rs. 46,000. Partners borrowed some amount of loan from a financial institution of Rs. 300,000 at 12% interest rate. The interest on capital 7.5% p.a is allowed to partner B. During their first fiscal year of partnership, they earned a net profit of Rs. 1,650,000.

Required:

Profit and Loss appropriation account to allocate the profit with 3:2 to partners A and B respectively. Provide necessary journal entries. Moreover, also prepare a capital account for the partnership.

Paragraph . Styles Paste your answer Picture here: Q.No.5 Mr. A and Mr. B start a business on Oist June 2021, with capital of 2,570,000 and 800.000. According to agreement Mr. A is entitled for a salary of 250,000 whereas another partner is entitled for Rs. 46,000. Partners borrowed some amount of loan from a financial institution of Rs. 300,000 at 12% interest rate. The interest on capital 75% pa is allowed to partner B. During their first fiscal year of partnership, they camed a net profit of Rs. 1.650.000 Required: Profit and Low appropriation account to allocate the profit with 32 to partners A ad B respectively. Provide necessary journal entries. Moreover, the prepare a capital account for the partnership (12 marks) Per Picture her