Distribution of Profits: Anitha, Ramita were partners sharing profit and losses in the ratio of 7:3. Their capitals were Rs. 80,000 and Rs. 60,000, respectively.
1. Interest on capital @10% p.a.
2. Interest on drawings @12% p.a.
3. Both to get a salary of Rs. 10,000 each per annum.
4. Anitha to get a commission of 10% on the net profit before charging such commission.
The profit for the year Rs. 60,000. Drawings were Anitha Rs. 12,000 and Ramita Rs. 8,000. Show profit and loss appropriation account and the capital A/c.
