Question - 18

Ram and shyam are partners in a firm whose capitals on 1st January 2018 were Rs. 25,000 and Rs. 20,000 respectively they are allowed interest on capital of 8% p.a. and interest on drawing is charged of 12% p.a. Ram gave Rs. 10,000 to the firm as loan on 1st July 2018 Shyam is entitled to ger as annual salary of Rs. 5,000 interest charged on their drawings were Rs. 600 and Rs. 500 respectively the profit for the year ended on 31st December 2018 before making above adjustments was Rs. 25,000 prepare profit and loss appropriation account for the year 2018.

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