Simmi and Sonu are partners in a firm, sharing profits and losses in tite ratio of 3:1. The profit and loss account of tite firm for the year ending March 31, 2015 shows.a net profit of 1,50,000. Prepare the Profit and Loss Appropriation Account by taking into consideration the following information:
(i) Partners capital on April 1, 2014; Sinimi, 30,000; Sonu, 60,000; 104 Accountancy Not-for-Profit Organisation and Partnership Accounts
(ii) Current accounts babnces on April 1, 2014; Simmi, 30,000 (cr.); Sonu, 15,000
(iii) Partners drawings during the year amounted to Simmi, 20,000; Sonu, 15,000;
(iv) Interest on capital was allowed @ 5% p.a. (y) Interest on drawing was to be charged @ 6% p.a. at an average of six in months;
(vi) Partners’ salaries : Simini 12,000 and Sonu 9,000. Also show the partners’ current accounts.
