55. The partnership agreement of Rohit, Ali and Sneh provides thate
6) Prohts will be shared by them in the ratio of 2:2:1.
(1) Interest on capital to be allowed at the rate of 6% per annum,
(iii) Interest on drawings to be charged at the rate of 3% per annum.
(v) Ali to be given a salary of 500 per month.
(V) Ali's guarantee to the firm that the firm would earn a net profit of at least 80,000 per annum
and any shortfall in these profits would be personally met by him.
The capitals of the partners on 1st April, 2013, were:
Rohit-* 1,20,000;
Ali-* 1,00,000;
Sneh_* 1,00,000
During the financial year 2013-14, all the three partners withdrew * 1,000 each at the beginning of
every month.
The net profit of the firm for the year 2013-14, was 70,000.
You are required to prepare
for the
year
2013-2014:
O Profit and Loss Appropriation Account.
Gi) Partners' Capital Accounts.
LISC 2030
Answers
Answer:
Explanation:
Profit & loss Appropriation A/c
Particulars Amount Particulars Amount
To Interest on capital
Rohit capital A/c 7200 By profit & loss A/c 70000
ali's capital A/c 6000 By Interest on drawing
Sneh capital A/c 6000 Rohit capital 360
To Ali salary 6000 Ali capital 360
Profit transfered to Sneh capital 360
Rohit capital 22352 By Ali capital 10000
Ali capital 22352
Sneh capital 11176
81080 81080