Bala and Boye are partners sharing profit in proportion to their capitals .at close of...

Bala and Boye are partners sharing profit in proportion to their capitals .at close of their financial year on 31st December,1999 the following balances stood to the credit of the partners;
Capital accounts:Bala 50,000 Boye12500.
Current account Bala 2650,Boye 7000.
the partnership agreement provides
A.boye shall receive a salary of 2,500 per annum.
B.boye shall be entitled to ten percent of the net profit after charging his salary and interest on capital,current and drawings.
C.interest of five percent per annum to be allowed on capital and current account, the net profit for the year before adjustment was 56,455 the partners drawings were Bala 25,000, Boye 7,500 on which the following amount of interest are to be charged #825 for Bala and #200 for Boye,you are required to prepare the necessary accounts of the partnership.?

In University of Port-Harcourt
1 Answers Available
Asked by Onyinyechi on 3rd April, 2023