Question

48. Sajal and Kajal are partners sharing profits and losses in the ratio of 2:1. On 1st April, 2019 their Capital
were: Sajal 5,00,000 and Kajal 4,00,000.
Prepare Profit and Loss Appropriation Account and the Partners' Capital Accounts at the end of the Year
from the following information:
(a) Interest on Capital is to be allowed @ 5% p.a.
(b) Interest on the loan advanced by Kajal for the whole year, the amount of loan being 73,00,000
(o interest on partners' drawings @ 6% pa. Drawings: Sajal ? 1,00,000 and Kajal * 80,000.
(d) 10% of the divisible proht is to be transferred to General Reserve.
Profit, before giving effect to the above, for the year ended 31st March, 2020 is 7,02,600.
Note: Net profit means net profit after debit of interest on loan by the partner.​

Answer 1

Answer:

1. find the interest on capital that will be sajal-5,00,000*5/100=25000 and kajal-4,00,000*5/100=20000
2. then interest on loan that is 73,00,000*6/100
3. interest on drawing that will be sajal-1,00,000*6/100=6000 and kajal-80,000*6/100=4,800
4. now 7,02,600(net profit) +6000+4800(interest on drawing) -25,000-20,000(interst on capital) =6,68,400
5. now calculation of amount transferred to general reserve (6,68,400*10/100 =66,840)
6. then, divisible profit (6,68,400-66,840=6,01,560)
7. now is profit ko ratio me divide Krdo.

Answer 2

Given:

Interest on Capital is to be allowed @ 5% p.a

amount of loan being 73,00,000

Calculation of Interest on Capital

Interest on Sajal's Capital=50,000x 5/100== Rs 2,500

Interest on Sajal's Capital = 20000 × 5/100 = Rs 2000

Profit, before giving effect to the above, for the year ended 31st March, 2020 is 7,02,600.

Calculation of Interest on Drawings

Interest on Sajal's Drawings = 10,000x6/100x6/12 =Rs 300

Interest on Kajal's Drawings = 8,000x6/100x6/12 =Rs 240

WN 3 Calculation of Amount to be transferred to Reserve

Amount for Reserve = 10% of Divisible Profit

Divisible Profit = Profit + Interest on Drawings − Interest on Capital

= 68,460 + 540 − 4,500 = Rs 64,500

Calculation of Profit Share of each Partner

Profit available for Distribution

= 68,460 + 540 − 4,500 − 6,450 = Rs 58,050

Profit sharing ratio = 2 : 1

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