A,band c were partners in a firm having capitals of 200000;200000 and 80000 eespectively on 1st april 2015 their current account balamce were a 20000 b 100000 and 5000 dr according to the partnersip deed the partners was also entitled to a salary of 6000 per quarter the profit were to be divided as follow (a)the first 60000 in proportion to their capitals
Answers
Explanation:
Journal of Sonu and Rajat
Date
Particulars
L.F.
Dr. (Rs.)
Cr. (Rs.)
2018
March 31
Profit & Loss Appropriation A/c Dr.
2,40,000
To Sonu’s Capital A/c
2,40,000
(Being Salary for the year payable to Sonu)
March 31
Profit & Loss Appropriation A/c Dr.
1,00,000
To Rajat’s Capital A/c
1,00,000
(Being commission on turnover @ 5% payable to Rajat)
March 31
Profit & Loss Appropriation A/c Dr.
1,12,000
To Sonu’s Capital A/c
64,000
To Rajat’s Capital A/c
48,000
(Being interest on capital @ 8% p.a)
March 31
Sonu’s Capital A/c Dr.
400
Rajat’s Capital A/c Dr.
1,650
To :Profit & Loss Appropriation A/c
2,050
(Being interest on drawings of partners charged @ 6% p.a)
March 31
Profit & Loss Appropriation A/c Dr.
40,000
To Sonu’s Capital A/c
24,000
To Rajat’s Capital A/c
16,000
(Being divisible profit in 3:2 distributed)
Working notes:
1. Computation of interest on drawings of partners
Drawings of Sonu = 20,000
Drawings of Rajat = 12 * 5,000 = 60,000
Interest on Sonu’s drawings = 20,000 * 6/100 * 4/12 = 400
Interest on Rajat’s drawings = 60,000 * 6/100 * 5.5/12 = 1,650
2. Computation of divisible profit and its distribution between partners
Profit as per the Profit and Loss account = 4,89,950
Divisible profit = Net Profit + Interest on Drawings – Interest on Capital – Salary of Sonu – Commission to Rajat
Divisible profit = 4,89,950 + 2,050 -1,12,000 – 2,40,000 – 1,00,000 = 40,000
Sonu’s share in divisible profit = 40,000 * 3/5 = 24,000
Rajat’s share in divisible profit = 40,000 * 2/5 = 16,000