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P and Q entered into partnership on 1st April 2017 and contributed 1,00,000 each through...

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Accounting

P and Q entered into partnership on 1st April 2017 and contributed 1,00,000 each through funds as fixed capital and also contributed 1,00,000 worth of vehicle and 50,000 of computer respectively. On 1st October 2017, P provided 50,000 as loan to the firm. As per the provisions of the partnership Deed:
(i)20% of Profits before charging interest on Drawings but after making appropriations to be transferred to General Reserve.
(ii) Interest on capital at 12% p.a. and Interest on Drawings @ 10% p.a.
(iii) P to ger monthly salary of 5,000 and Q to get salary of 22,500 per quarter.
(iv) P is entitled to a commission of 5% on sales. Sales for the year were 3,50,000.
(v) Profit and Loss to be shared in the ratio of their total capital contribution (fixed additional fluctuating introduced) up to 1,75,000 and above 1,75,000 equally.
The profit for the year ended 31st March 2018 before providing for any interest was 4,61,000. The drawings of P and Q were 1,00,000 and 1,25,000 respectively.
Prepare Profit and Loss Appropriation Account
Partners' Capital and current Accounts

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