Question

A and B were partners in a firm sharing profit and losses in the ratio of their capitals which were ₹ 5,00,000 and ₹ 4,00,000 respectively. The partnership agreement provided a salary of₹ 20,000 p.a. to B and 10 % p.a interest on partners ' capital . The profit of the firm for the year ended 31st March , 2018 was ₹ 1,46,000. Prepare Profit & Loss Appropriation A/C of A and B for the year ended 31st March , 2018 . ( C.B.S.E2009-C-modified ) {Ans . Profit 36,000 in ratio 5:4}​

Answer 1

Answer:                        Profit&loss account

                     for the year ended 31st march 2018

particular                            amount                  particular                     amount

To salary of B                     20000                By P&L A/C                   146000

To interest on capital a/c

(10% ON CAPITAL)

partner A  

(500000@10%)   50000

Partner B

(400000@10%)    40000     90000

To share of profit a/c

Partner A

(36000*5/9)-         20000

Partner B

(36000*4/9)-         16000      36000

                                             146000                                                     146000

Explanation: