Durga and Preethi entered into a partnership agreement on 1st April 2018. Durga contributing Rs. 1,00,000 and preethi Rs. 1,20,000.
(a) Profit and losses to be shared in the ratio 3:2 as between Durga and Preethi
(b) Partners to be entitled to interest on capital @ 5% p.a.
(c) Interest on drawings to be charged for Durga Rs. 1200. Preethi Rs. 1800
(d) Durga to receive salary of Rs. 20,000 for the year.
(e) Preethi to receive a commission of Rs. 8,000. During the year, the firm made a profit of Rs. 80,000 before adjustment of interest, salary and commission, prepare Profit and Loss Appropriation A/c.
