53 :- Ali and Bahadur are partners in a firm sharing profits and losses as Ali 70% and Bahadur 30%. Their respective capitals as at 1st April 2024, stands as Ali Rs 2,50,000 and Bahadur Rs 2,00,000. The partners are allowed interest on capitals @5% p.a. drawings of the partners during the year ended 31st March 2025 were Rs 35,000 and Rs 25,000 respectively. Profit for the year, before allowing interest on capital and yearly salary of Bahadur @30,000 was Rs 4,00,000, 10% of divisible profits is to be transferred to reserve.
Prepare Partner’s current accounts and capital accounts recording the above transactions.
Solution:-
