Sukesh and Vanita were partners in a firm. Their partnership agreement provides that:
(i) Profits would be shared by Sukesh and Vanita in the ratio of 3:2,
(ii)` 5%` interest is to be allowed on capital,
(iii) Vanita should be paid a monthly salary of Rs. 600. The following balances are extracted from the books of the firm, on March 31, 2017.
`{:(,"Sukesh","Vanita"),(,(Rs.),(Rs.)),("Capital Accounts",40_(,)000,40_(,)000),("Current Accounts",(Cr.)7_(,)200,(Cr.)2_(,)800),("Drawings",10_(,)850,8_(,)150):}`
Net profit for the year, before charging interest on capital and after charging partner’s salary was Rs. 9,500. Prepare the Profit and Loss Appropriation Account and the Partner’s Current Accounts.