A and B are partners in a firm sharing profits in the ratio of
3:2. Their capitals as on April,. 1 2014 were *2,00,000/- and
*1,80,000/- respectively. On October 1, 2014, A introduced an
s additional capital of 50,000 and on January, 1, 2015, B introduced
0 * 70,000/-. Interest on capital is allowed at 10% p.a. Calculate
1 interest on capital for both the partners for the year ending March,
31, 2015.
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Answer:
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