Arun and Vijay are partners in a firm. their capital contribution were rupees 600000 rupees and 4 lakh rupees respectively. the terms of the partnership agreement are as follows: 1)10% of the profit should be transferred to general reserve
2) interest on capital at 10% per annum and interest on drawings at 12% per annum
3) Arun and Vijay to get a monthly salary of rupees 1000 and rupees 2000 respectively.
4) Arun is entitled to a commission of rupees 10000
5) sharing profits and losses will be in the capital ratio.
the profit for the year ended 31st March 2019 before making about above appropriations was rupees 380000. The drawings of Arun and Vijay were rupees 36000 and rupees 24000 respectively. Give necessary journal entries. Prepare profit and loss appropriations account and capital account when capitals are fluctuating.