question 2

Ahmed, Babu and Chatu are partners sharing profit and losses in the ratio 3:1:1 after interest on capital at 10% and salaries to Babu and Chatu of sh 300,000 each. Their trial balance for period ended 31/12/03 is as follows. Capital accounts: Ahmed Babu Chatu Sales and purchases Debtors and creditors Returns Discounts Office expenses Current accounts: Ahmed Dr sh 6,000,000 2,000,000 400,000 200,000 2 1,000,000 Cr sh 3,000,000 2,000,000 1,500,000 10,000,000 800,000 200,000 300,000 500,000