Anupam and Abhishek are partners sharing profits and losses in the ratioof 3 : 2. Their capital accounts showed balances of Rs. 1,50,000 and Rs.2,00,000 respectively on Jan 01, 2017. Show the treatment of interest oncapital for the year ending December 31, 2017 in each of the followingalternatives:(a) If the partnership deed is silent as to the payment of interest on capitaland the profit for the year is Rs. 50,000;(b) If partnership deed provides for interest on capital @ 8% p.a. and thefirm incurred a loss of Rs. 10,000 during the year;(c) If partnership deed provides for interest on capital @ 8% p.a. and thefirm earned a profit of Rs. 50,000 during the year;(d) If the partnership deed provides for interest on capital @ 8% p.a. and thefirm earned a profit of Rs. 14,000 during the year.

Anupam and Abhishek are partners sharing profits and losses in the ratioof 3 : 2. Their capital accounts showed balances of Rs. 1,50,000 and Rs.2,00,000 respectively on Jan 01, 2017. Show the treatment of interest oncapital for the year ending December 31, 2017 in each of the followingalternatives:(a) If the partnership deed is silent as to the payment of interest on capitaland the profit for the year is Rs. 50,000;(b) If partnership deed provides for interest on capital @ 8% p.a. and thefirm incurred a loss of Rs. 10,000 during the year;(c) If partnership deed provides for interest on capital @ 8% p.a. and thefirm earned a profit of Rs. 50,000 during the year;(d) If the partnership deed provides for interest on capital @ 8% p.a. and thefirm earned a profit of Rs. 14,000 during the year.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1EA: On May 1, 2017, BJ and Paige formed a partnership. Each contributed assets with the following...

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