Question

48. Sajal and Kajal are partners sharing profits and losses in the ratio of 2:1. On 1st April, 201
were: Sajal
-5,00,000 and Kajal - 4,00,000.
Prepare Profit and Loss Appropriation Account and the Partners' Capital Accounts at the e
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
(c) Interest on partners' drawings @ 6% p.a. Drawings: Sajal 1,00,000 and Kajal 80.000.
(d) 10% of the divisible profit is to be transferred to General Reserve
Profit before giving effect to the above, for the year ended 31st March, 2020 is 7,02,500.
Note: Net profit means net profit after debit of interest on loan by the partner​

Answer 1

Answer:

n...

12th

Accountancy

Accounting for Partnership Firms - Fundamentals

Special Aspects of Partnership Accounts

A and B are partners sharin...

ACCOUNTANCY

A and B are partners sharing profits in the ratio of 3 : 2. with capitals of Rs. 50,000 and Rs. 30,000 respectively. Interest on capital is agreed @ 6% p.a. B is to be allowed an annual salary of Rs. 2,500. During the year profit prior to interest on capital but after charging B's salary amounted to Rs. 12,500. A provision of 5% of the profits is to be made in respect of Manager's Commission. Prepare an account showing the allocation of profits and the Partners' Capital Accounts.

December 26, 2019

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Fardin Kapil

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ANSWER

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