Hi friends test your understanding and give answer to following question..![smiley smiley](https://caclubindia.s3.amazonaws.com/cdn/ckeditor/plugins/smiley/images/regular_smile.gif)
Basic Question:
D, E and F were partners in a firm sharing profit in ratio of 5:7:8. Ther fixed capital were D= 5 lakh; E= 7 lac and F= 8 lac. Their partnership deed provided for the following.
a) Interest on capital @ 10% p.a.
b) Salary to F =10,000 p.m.
c) Interest on drawing at 12 % p.a.
D withdrew Rs. 40000 on 31st Jan 2009, E withdrew 31st Mar anf F withdrew 30000 on 31st Dec 2009.
During the year ended 31st dec 2009, the firm earned a profit of 3,50,000.
Calculate
1. Interest on capital
2. Interest on drawing
3. Net divisible profit.
First comment with right answer would be winner!!