Question

38. Kanu and Shruti are partners sharing profits in the ratio of 3:2. Their opening Capitals
are 75,000 and 50,000 respectively. Interest on Capital is agreed @ 8% per annum.
Shruti is to be allowed an annual Salary of * 6,000. During 2016 the profits of firm prior to
Calculation of interest on capital and before charging Shruti's salary amounted to 22,000.
A provision of 5% of given profits is to be made in respect of manager's commission.
You are required to make Profit and Loss Appropriation Account and Partners Capital
Accounts​

Answer 1

Answer:

Explanation:

Profit And Loss Account

Particulars  Amount Particulars   Amount

To Manager;s  

commission

(15000*5/100)  750  By profit before B's Salary

(12500+2500)  15000

To Net profit T/f to

P/L Appropriation

Account  14250    

Total  15000  Total  15000

                            Profit And Loss Appropriation Account

Particulars  Amount  Particulars Amount  

To Interest on capital

A = 50000*6% = 3000

B=30000*6% = 1800  4800  By net profit  14250

B's Salary  2500    

To profit T/f to

A's Capital A/c = 4170

B's Capital A/c = 2780  6950    

Total  14250  Total  14250

       

                                     Partners  capital account

Particulars  A  B  Particulars  A  B

      By bal b/d 50000   30000

      By Int on capital  3000  1800

      salary    2500

To bal c/d  57170  37080  By P/L Appr A/c  4170  2780

Total  57170  37080  Total  57170  37080

Answer 2

Here is your right answer

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