28. A. B and C are partners with Fixed Capitals of 1,00,000; 2,00,000 and
3,00,000 respectively. Their partnership deed provides that:
(a) A is to be allowed a monthly salary of 600 and B is to be allowed a monthly
salary of 400.
(b) C will be allowed a commission of 5% of the net profit after allowing salaries
of A and B.
(c Interest is to be allowed on Capitals @ 6%.
(d) Interest will be charged on partner's annual drawings at 4%.
(e) The annual drawings were : B 10,000 and C 15.000.
The net profit for the year ending 31st March, 2016 amounted to 1,72,000.
Prepare Profit and Loss Appropriation Account.
[Ans. Share of Profit: 39,000 to each partner.]
Answers
Answer:
Explanation:
P& L App. Account
Particulars Amount Particulars Amount
To salary By P&l A/c 1,72,000
A 600 *12= 7200 By int. B 400
B 400 *12= 4800 By int C 600
To C's commission 8000
To int. on capital A 6000
B 12000
C 18000
To profit shared A 39000
B 39000
C 39000
1,73000 173000
Answer:
Explanation:
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