A and B are partners sharing profits and losses in the ratio of 3:2. They invested capitals of ₹1,00,000 and ₹50,000 respectively. Compute interest on capital and show distribution of profits in concerned a/c in each of the following cases:- i. If the partnership deed is silent and profits for the year are ₹8,000. ii. If the partnership deed provides for Interest on Capital @ 5% p.a. and profits for the year are ₹7,500. iii. If the partnership deed provides for Interest on Capital @ 5% p.a. and profits for the year are ₹9,000. iv. If the partnership deed provides for Interest on Capital @ 5% p.a. and losses for the year are ₹6,000. v. If the partnership deed provides for Interest on Capital @ 5% p.a. and profits for the year are ₹3,000. vi. If the partnership deed provides for Interest on Capital @ 5% p.a. even if it involves the firm in loss and profits for the year are ₹5,000. vii. If the partnership deed is silent and losses for the year are ₹6,000.
Answers
Answer:
Mark me as brainliest pls
Explanation:
Journal Entries
Case 1- Profit and Loss A/c Dr. 20,000
To Profit and Loss Appropriation A/c 20,000
(Being profit transferred to p &L app Account)
Profit and loss Appropriation A/c Dr 20,000
To X's capital A/c 8000
To Y's capital A/c 12,000
(Being profit distributed among partners)
Case 2- Profit and loss A/c Dr. 15000
To Profit and Loss Apprpriation A/c 15000
(Being loss transferred to P&L A/c)
X's capital A/c Dr. 6,000
Y's capital A/c Dr. 9000
To profit and loss A/c 15,000
(Being the loss distributed among partners)
No interest on capital is allowed in case of loss.
Case 3- Profit and loss A/c Dr. 21,000
To profit and loss Appropriation A/c 21,000
(Being profit transferred to P&L app account)
Profit and loss appropriation A/c Dr. 18,000
To X's capital A/c 12,000
To Y's capital A/c 6000
(Being interest on capital allowed to partners)
Profit and loss Appropriation A/c Dr. 3000
To X's capital A/c 1200
To Y's capital A/c 1800
(Being the profit distributed among partners)
Case 4- Profit and loss A/c Dr. 20000
To profit and loss Appropriation A/c 20000
(Being the net profit transferred to p&l app account)
Profit and loss Appropriation A/c Dr. 2000
To X's capital A/c 800
To Y's capital A/c 1200
(Being profit distributed among partners)
Profit and loss A/c Dr. 18,000
To X's capital A/c 12,000
To Y's capital A/c 6000
(Being interest allowed)
Case 5- Profit and loss A/c Dr. 18,000
To X's capital A/c 12,000
To Y's capital A/c 6000
(Being interest charged from profit)
X's capital A/c Dr. 6400
Y's capital A/c Dr. 9600
To Profit and loss A/c (18000-2000) 16000
(Being loss transferred to partners account)
Case 6- Profit and loss A/c Dr. 18,000
To X's capital A/c 12,000
To Y's capital A/c 6000
(Being interest allowed to partners)