On 1st January, 2017, A, B and C enter into partnership contributing Rs 2,50,000, Rs 1,30,000 and Rs 1,20,000 respectively and sharing profits and losses in the ratio of 5 : 3 : 2. B and C are...

Rs 1,30,000 and Rs 1,20,000 respectively and sharing profits and losses in the ratio of 5 : 3 : 2. B and C are entitled to a salary of Rs 16,000 and Rs 14,500 respectively per year. Interest on capital is allowed at 5% p.a. 6% interest is charged on drawings.