Question

201
Q.17. Ajay and Vijay are partners with capital of Rs. 30,000
and Rs. 10,0000 respectively on 1st April, 2017. The trading
profit (before taking into account the provisions of deed) for
the year ended on 31st March, 2018 was Rs. 12,000. Interest
on capital is to be allowed at 6% per annum. Vijay is entitled
to a salary of Rs. 3,000 p.a. The drawings of the partners were
Rs. 3,000 and Rs. 2,000. The interest on drawings for Ajay is
Rs. 100 and for Vijay Rs. 50.
Assuming that Ajay and Vijay are equal partners,
prepare the Profit & Loss Appropriation Account as on 31
March, 2018.​

Answer 1

Answer:

hope it will help you

Explanation:

Particulars Ajay Vijay

Opening Balance of Capital A/c 2,00,000 3,00,000

Interest on Capitals @8% upto 31.06.2015 4,000 6,000

Add: Capital Introduced 50,000 60,000

Adjusted balance of capital A/c 2,50,000 3,60,000

Interest on Capitals @8% from 01.07.2015 to 30.09.2015 5,000 -

Interest on Capitals @8% from 01.07.2015 to 31.12.2015 - 14,400

Less: Capital Withdrawn 30,000 15,000

Adjusted balance of capital A/c 2,20,000 3,45,000

Interest on Capitals @8% from 01.10.2015 to 30.03.2016 8,800 -

Interest on Capitals @8% from 01.01.2016 to 30.03.2016 - 6,900

Total Interest on Capitals 17,800 27,300

Interest on capital is usually calculated at the end of the year.