Question

Ajay, vijay and Sanjay are partners in a firm, sharing profit and loss in the ratio of 2:1:1 with capital of Rs. 28800, Rs. 19200 and Rs. 14400 respectively on which interest @5% per annum is payable. Sanjay gets salary of Rs. 7200 per annum and Vijay gets commission on gross sales @3% . The firm showed profit of Rs. 27600 gross sales amounted of Rs. 336000 interest on drawing was Rs. 192, Rs. 240 and Rs. 288 respectively. Prepare profit and loss appropriation account and partners capital a/c.

Answer 1

Answer:

To interest on capital a/c | By net profit 27600.

Jay 1440 By interest on drawing

Vijay 960 Jay 192

Sanjay 720 Vijay 240

To Salary a/c Sanjay 288 | 720

Sanjay 7200 per annum

To commission on gross sales a/c

Vijay (336000*3/4)= 10080

To profit transfer to capital a/c 7920

Jay 3960

Vijay 1980

Sanjay 1980

______ _______

28320 28320

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