Examples 2 Introduction to Partnership and Partnership Final Accounts Answer the following

Book- Keeping and Accountancy

STANDARD XII

Chapter 1. Introduction to Partnership and Partnership Final Accounts

Page No. in book (9) 


Answer the following

Examples 2

2) Karan and Kiran are partners in M/s Mehta Enterprises. They have started business of ready made garments on 1st April 2019 on which date they contribute ` 5,00,000 each as their initial capitals. Karan has withdrawn ` 20,000 and Kiran has withdrawn ` 15,000 for their personal use. Interest on capital is allowed @ 12% and interest on drawing is charged @ 3% p.a. Karan is entitled to get salary, ` 1800 per month, Kiran is allowed to get commission @ 5% on net sales. During the year net sales is ` 2,50,000 and net profit earned during the year is ` 60,000. Prepare partners capital accounts under i) Fixed capital Method ii) Fluctuating Capital Method


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