Question

A and B entered into partnership on 1st April 2000 contributing 2,50,000 and 1,00,000 respectively. B also introduced 50,000 additional capital on 1st July 2020.The agreed to share profits and losses in the ratio of 3:2. Following information in provided regarding the partnership- 1. A and B each salary of a 3000 per quarter .2. Interest is to be allowed capitals @ 8% pa. and Charged on drawings at 10%p.a. Drawings of A and B during the year were 6000 and 5000 respectively. profit as at 31st march 2021 bebore the above mentioned adjustments was 98,000 - prepare Profit and loss Appropriation Account and partners capital Account​

Answer 1

Answer:

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Answer 2

Answer:

Explanation:

GIVEN DATA:-

• A and B entered into partnership on 1st April 2000 contributing 2,50,000 and 1,00,000 respectively.
• B also introduced 50,000 additional capital on 1st July 2020.
• The agreed to share profits and losses in the ratio of 3:2.
• A and B each salary of a 3000 per quarter
• Interest is to be allowed capitals @ 8% pa.
• Charged on drawings at 10%p.a.
• Drawings of A and B during the year were 6000 and 5000 respectively
• profit as at 31st march 2021 bebore the above mentioned adjustments was 98,000

CALCULATION ON INTREST ON CAPITAL

→INTREST ON CAPITAL = CAPITAL × (RATE/100)

⇒ FOR A

TOTAL CAPITAL = 2,50,000

INTREST = 2,50,000 × 8% = ₹ 20,000

⇒FOR B

TOTAL CAPITAL = 1,50,000

1,00,000 ON OPENING 50,000 AS ON 1ST JULY

INTREST = 1,00,000 × 8% = ₹ 8,000

(+)INTREST ON ADDITIONAL = 50,000 × 8% × 9/12 =₹ 3,000

B's INTREST ON CAPITAL = 8,000 + 3,000 = ₹ 11,000

⇒CALCULATION OF SALARY OF A AND B

AS PER DEED,A and B each salary of a 3000 per quarter

→A's SALARY = 3,000 × 4 = 12,000

→B's SALARY = 3,000 × 4 = 12,000

⇒ CALCULATION OF INTREST ON DRAWINGS

→FOR A

INTREST = 6,000 × 10% × 6/12 = ₹ 300

→FOR B

INTREST = 5,000 × 10% × 6/12 = ₹ 250