Amuthan and Raman are partners in a firm showing Profits and
Losses in the ratio 3:2. Their capitals on 1.4.2003 were
Rs.1,60,000 and Rs.1,20,000 respectively. The Net Profit of the
firm for the year ended 31st March 2004 before making
adjustments for the above items was Rs.60,000. Drawings of the
partners during the year were, Amuthan Rs.12,000 and Raman
Rs.8,000. Their Partnership Deed provided for the following:
1. Interest on Capital at 5% p.a.
2. Interest on Drawings at 6% p.a.
3. Amuthan and Raman to get a salary of Rs.10,000 each per
annum.
4. Amuthan to get a commission of 10% on the Net Profit before
charging such commission.
Show the Profit and Loss Appropriation Account and Capital
Accounts of the partners.