Q. 31. P, Q and R were partners and the balance of their capital accounts on 1st
April 2020 were 8,00,000 (Credit); 35,00,000 (Credit) and 20,000 (Debit)
respectively. As per the terms of partnership agreement interest on capitals is to be
allowed @ 10% p.a. and is to be charged on drawings @ 12% p.a.
Partners withdrew as follows:
(i) P withdrew 10,000 p.m. at the end of each month;
(ii) Q withdrew 1,20,000 out of capital on 1st January 2021;
(iii) R withdrew 1,20,000 during the year.
The profit for the year ended 31st March , 2021 amounted to ₹4,30,000 .
You are required to prepare journal entries and partner's capital accounts .
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