A and B entered into partnership on 15 november 2020 without any partnership deed . They introduced capitals of 500000 and 300000 respectively . On 15 december 2020 , A advanced 200000 by a way of loan to the firm without any agreement as to interest . On 1 january 2021 firm give a loan of 40000 to B. The profit and loss account for the year ended 31.3.2021 showed a profit of 200000 before providing for the above . B share of profit will be
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Answer:
Profit and loss Appropriation A/c Dr. 4,25,000
To A's capital A/c 2,12,500
To B's capital A/c 2,12,500
(Being profit distributed equally)
PARTNERS CAPITAL ACCOUNTS
Particulars A B Particulars A B
To bal c/d 7,12,500 5,12,500 By bank a/c 5,00,000 3,00,000
By profit and loss App A/c 2,12,500 2,12,500
Total 7,12,500 5,12,500 Total 7,12,500 5,12,500
A's Loan Account
Particulars Amount Particulars Amount
To bal c/d 2,05,000 By bank A/c 2,00,000
By interest on A's loan 5000
Total 2,05,000 Total 2,05,000
Calculation of Interest on Loan
Interest on A's loan = 2,00,000*6%*5/12=5000
Interest on A's Loan A/c Dr. 5000
To A's loan A/c 5000
(Being interest on loan paid)
Profit and loss A/c Dr. 5000
To Interest on A's loan A/c 5000
(Being interest transferred to p&l A/c)