A.Band C are partners in a firm ,Accrding to the partnership Deed the parhters are entitled to draw up to Rs. 7.000 per month .On the 1st day of evry month A .AB and C Drew Rs. 7.000,Rs. 6.000 and and RS. 5000 respectively interest on capitals and interest on drawing are fixed @ 8 % and 10 % respectively profit for the year ended 31 st March 2019 was Rs. 7.55.000 out of which and Rs. 2.00.000 are to be respectively and A is to Gereral Reserve B and C are to get salary of Rs. 30.000 and 45.000 p.a respectively and A is to receive commission @10% on disbuttable profits after charging such commission On 1st april 2018v balances of their capital accounts were
Rs. 5.00.000 ,Rs. 4.00.000 and 3.50.000 respectively .
Prepare profit and loss appropriation account for th year ended 31 st March , 2019 ad capital accounts of partners in the books of the firm .
Answers
Answer:
PROFIT AND LOSS APPROPRIATION ACCOUNT
Particulars Rs Particulars Rs
To, General Reserve A/c 200000 By Profit and loss A/c (Net Profit) 755000
To, Interest on Capital A/c
A ( 500000*8%) 40000
B ( 400000*8%) 32000
C ( 350000*8%) 28000
100000 By Interest on Drawing A/cs (WN 1)
A (84000*10%*6.5/12) 4,550
B (72000*10%*6.5/12) 3,900
C (60000*105*6.5/12) 3,250
11,700
To, Partners Salary A/c
B 30000
C 45000
75000
To, A's Commission A/c (WN 3) 35,609
To, Profit transferred to:
A's Capital A/c 1,18,697
B's Capital A/c 1,18,697
C's Capital A/c 1,18,697
3,56,091
7,66,700 7,66,700
PARTNERS CAPITAL ACCOUNT
Particulars A B C Particulars A B C
To, Drawings A/c 84,000 72000 60000 By, Balance b/d 500000 400000 350000
To, Interest on Drawings A/c 4,550 3,900 3,250 By, Interest on capital A/c 40000 32000 28000
To, Balance c/d 6,05,756 4,74,797 4,78,447 By, Partners Salary A/c _ 30000 45,000
By, A's Commission A/c 35,609 _ _
By, Profit and loss Appropriation A/c 118697 118697 118697
Total 6,94,306 5,50,697 5,41,697