51. Yadu, Vidu and Radhu were partners in a firm sharing profits in the ratio of 4:3:3. Their fue
1st April 2018 were 9,00,000, 5,00,000 and 4,00,000 respectively. On 1st November, 2012
a loan of 80,000 to the firm, as per the partnership agreement
( The partners were entitled to an interest on capital @ 6% p.a.
(11) Interest on partners' drawings was to be charged @ 8% p.a.
The firm earned profit of 32,53,000 (after interest on Yadu's Loan) during the year 2018-10
drawings for the year amounted to:
Yadu-80,000. Vidu- 70,000 and Radhu-50,000.
Prepare Profit and Loss Appropriation Account for the year ending 31st March, 2019
[Ans.: Share of Profit: Yadu-61,200: Vidu- 45,900, Rodas
(Hint: Interest on drawings is charged on total amount for an average period of 6 months
Answers
Answer:
This is very understanding answer I hope it will help you
Concept: Profit and Loss Appropriation Account is a special account which is prepared by the firm for the distribution of profit and loss among all the partners.
Given: The firm earned profit of 32,53,000 (after interest on Yadu's Loan) during the year 2018-10
Find: Prepare Profit and loss Appropriation account.
Solution:
Profit and Loss Appropriation Account
Dr. For the year ended 31st March, 2021 Cr.
Particulars Amount Particulars Amount
To interest on capital By Net profit 2,53,000
Yadu 54,000 By interest on drawing
Vidu 30,000 Yadu 3200
Radhu 24,000 1,08,000 Vidu 2800
To profit t/f to Radhu 2000 8000
Yadu 61,200
Vidu 45,900
Radhu 45,900 153000
261000 261000
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