P. Q and R are the 3 partners in partnership firm. Partnership deed includes the following
(i)P, Q and R are to get interest @ 6% on their respective capital of 2,50,000; 1,50,000; and 1,00,000
(ii) R is entitled to get salary of 10,000 p.a.
(iii) R is to get extra benefit of 10% of profit in excess of 50,000 after providing for (i) and (ii) mentioned above
(iv) Q is entitled to 10% of profits after providing all the amounts in para (1), (ii) and (iii) mentioned above.
(v) The balance of profits will be shared by P, Q and R is ratio of 5:3:2.
The profits for the year before providing above items are 3,50,000.
You are required to prepare Profit and Loss Appropriation Account.
September 4, 2024