19. X & Y are Partners commenced Partnership business on 1.04.2019, sharing profits & losses in 3:2 ratio
with capitals of ₹ 1,00,000 and ₹ 80,000 respectively. They earned profits of ₹ 15,000 for the year before
allowing:
a) Interest on Capitals @ 10% p.a.
b) Interest on drawings: X ₹ 1,000 & Y ₹ .800
c) Commission payable to X ₹ 2000
d) Salary payable to Y ₹ 3000
Prepare P & L Appropriate A/c for the year ending 31.03.2020.
Answers
Answer:
answer is 16000.800
Explanation:
this is very simple and has same steps like profit and loss appropriation account..only thing here us there is a point there....dont worry..just..add tat point too
Answer:
The profit transferred to;
X's Capital A/C = 8,765
Y's Capital A/C = 8,035
Explanation:
Share of X's Profit
Interest on Capital (10% @ 1,00,000) = 10,000
Commission payable to X 2000
Total Profit of X = 12,000
Share of Y's Profit
Interest on Capital(10% @ 80,000) = 8,000
Salary payable to Y = 3000
Total Profit of Y = 11,000
Total Profit Needed = 12,000 + 11,000 = 23,000
Profit earned
However, Profit earned = 15,000
Interest on Drawings = 1,800 (1000 + 800)
Distributable Profit = 16, 800
Distributable profit is less than the Profit needed to satisfy all the clauses.
So, the Distributable profit will be shared in the ratio = 12,000: 11,000 or 12 : 11 (Total Profit of X : Total Profit of Y )
X's Share of Profit = 12/23 X 16,800 = 8,765
Y's Share of Profit = 11/23 X 16,800 = 8,035
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