\(\text { Net profit before the Commission } \times \frac{\% \text { of Commission }}{100}\) 
= 2,20,000 \(\times\) 10 /100 = Rs. 22,000
Commission to Sethu:
Net profit after Karthick's Commission
= Rs. 2,20,000 - 22,000
\(\text { Sethu's Commission }=\text { Net Profit after Karthick's comm. } \times \frac{\% \text { of commision }}{100+\% \text { of commision }}\) 
\(=1,98,000 \times \frac{10}{110}\) 
= Rs. 18,000

\(\text { Interest on Drawing }=60,000 \times \frac{10}{100} \times \frac{6}{12}\) 
= Rs. 300
Since date of drawing is not given interest to Calculated for an average of six months.

(i) Multiply each amount withdrawn by the relevairt period to find out the individual product.
(ii) Find out the sum of all the individual products.
(iii) Calculate interest prescribed rate for one month by using
\(\text { Interest on drawing }=\text { Sum of product } \times \frac{\text { rate }}{100} \times \frac{1}{12}\)

Interest is calculated on drawings for the period from the date of drawings to the date of closing date of the accounting year.
Interest on drawing - Amount of drawing \(\times\) Rate of Interest \(\times\)Period of interest.

Interest on capital is to be calculated in the capitals at the beginning for the relevant period. If there is any additional or withdrawn during the years, interest is to be calculated proportionately on the changed capitals.

(i) Manufacturing accounts - If manufacturing activity is carried on.
(ii) Trading and profits - loss Account, to ascertain profitability.
(iii) profit & loss Appropriation Account to show the disposal of profits and surplus.
(iv) Balance sheet to ascertain the financial status

(i) Credit side of partner's current account.
(ii) Debit side of partner's capital account
(iii) Credit of partner's capital account
(iv) Debit side of partner's current account
(v) Credit side of partner's current account

No, the accountant is not correct. He has not recorded the interest on loan currently because the interest on loan is a charge against profits and not an appropriation of profits.

It is so because salary or commission paid to a partner is not a charge on profit but an I appropriation of profit.

If the drawings are made regularly on the first day of each month, the interest on drawings will be
calculated for 6\(\frac12\) months i.e
Interest on drawings = Total drawings x \(\frac{Rate}{100}\) x \(\frac{6.5}{12}\)

Interest on partner's capital and interest on drawings are an appropriation of profit and not a charge on profit and hence is recorded through profit and loss appropriation account instead of profit and loss account

According to Indian partnership Act, 1932, no salary is allowed to partners in the absence of partnership deed so the claim of A for salary of Rs.18,000 per month is not valid.

According to Indian partnership Act, 1932 in the absence of partnership deed, profits are shared equally among the partners. So, the claim of Ramesh to share the profits in the ratio of capitals is not valid.

In the current account, the transactions relating to drawings, interest on capital, interest on drawings, salary, share of profit or loss etc, are recorded. Hence, the balance in the currents accounts change every year.

(i) Drawings is the amount withdrawn in each or in kind, for personal purposes.
(ii) A drawings account is opened in the name of each partner and the drawings are debited to this account.
(iii) At the end of every year, the drawings account is closely by a transfer to the respective partner's capital account or current account