Study
Ram and Rahim start business with capital of INR.
50,000 and 30,000 on 1st January, 2016. Rahim is
entitled to a salary of INR. 400 per month. Interest is
allowed on capitals and is charged on drawings at 6%
per annum. Profits are to be distributed equally after the
above noted adjustments. During the year, Ram
withdrew INR. 8,000 and Rahim withdrew INR. 10,000.
The profit for the year before allowing for the terms of
the Partnership Deed came to INR. 30,000. Assuming
the capitals to be fixed, prepare the Profit and Loss
Appropriation Account and prepare the Capital and
Current Accounts of Ram and Rahim. Based on these
Accounts information, answer the below mentioned
questions.
profit transferred to ram’s current account
A.12,570
B.10,470
C.11,350
D.9,575