Ali the Bahadur are partners in a firm sharing profits and losses as Ali 70% and Bahadur 30%. Their respective capitals as at 1st April, 2022 stand as Ali ₹25,000 and Bahadur ₹20,000. The partners are allowed interest on capitals @ 5% p.a. Drawings of the partners during the year ended 31st March, 2023 amounted to ₹3,500 and ₹2,500 respectively. Profit for the year, before charging interest on capital and annual salary of Bahadur @ ₹3,000, amounted to ₹40,000, 10% of divisible profit is to be transferred to Reserve. You are asked to show Partners' Current Account and Capital Accounts recording the above transactions.

 Ali the Bahadur are partners in a firm sharing profits and losses as Ali 70% and Bahadur 30%. Their respective capitals as at 1st April, 2022 stand as Ali  ₹25,000 and Bahadur  ₹20,000. The partners are allowed interest on capitals @ 5% p.a. Drawings of the partners during the year ended 31st March, 2023 amounted to  ₹3,500 and   ₹2,500 respectively.

Profit for the year, before charging interest on capital and annual salary of Bahadur @  ₹3,000, amounted to   ₹40,000, 10% of divisible profit is to be transferred to Reserve.
You are asked to show Partners' Current Account and Capital Accounts recording the above transactions.

  👇 Answer👇

#tsgrewal #tsgrewalsolution #accounts #accountssolution #class12accounts #class12 

for notes and solutions , refer the page .