A B and C are partners in a firm having capital of 60000? 80000 respectively .their current account balance were A10000 B5000 C2000 Dr.
according to partnership deed the partners were untitled to interest on capital 5% per annum saving also working partner also entitled to 6000 the prophets were to be divided as follows
1 cost rupees 20000 in proportion to their capital
2next rs 30000 5: 3 : 2
3 remaining preferred should charge equally the form make profit of 156000 before charging above items.
prepare profit and loss account and pass journal entries
Answers
Answer:
ANSWER
PROFIT AND LOSS APPROPRIATION A/C
(for the year ended 31st March, 2018)
Dr. Cr.
Particulars Amount Particulars Amount
To Salary to C 12000 By Net Profit a/c 172000
To Interest on Capital a/c
- A
- B
- C
5000
5000
10000
To Profit transferred to:
- A's Current a/c
- B's Current a/c
- C's Current a/c
50000
44000
46000
172000 172000
JOURNAL
1. Interest on Capital a/c..... Dr. 20000
To A's Current a/c 5000
To B's Current a/c 5000
To C's Current a/c 10000
(Being interest on capital transferred to the partner's current accounts)
2. Salary a/c.... Dr. 12000
To C's Current a/c 12000
(Being salary provided to C)
3. Profit and Loss Appropriation a/c.... Dr. 140000
To A's Current a/c 50000
To B's Current a/c 44000
To C's Current a/c 46000
(Being profit distributed among the partners)
Working Note:
Distribution of Profit:
Profit available for distribution= 172000-12000-20000
= 140000
A's share= [20000*1/4] + [30000*5/10] + [90000*1/3]
= 5000+15000+30000
= 50000
B's share= [20000*1/4] + [30000*3/10] + [90000*1/3]
= 5000+9000+30000
= 44000
C's share= [20000*2/4] + [30000*2/10] + [90000*1/3]
= 10000+6000+30000
= 46000
Explanation:
the process by which green plant make their own food is called photosynthesis
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