allowed interest on capital @6%p.a. from 1st april 2018 to 30th april 2018
Answers
Answer:
Notes : Net profit = profit-rent-interest on loan
= 1,35,000-24,000-300
= 1,10,700
PROFIT AND LOSS APPROPRIATION ACCOUNT
Particulars Amount Particulars Amount
To Interest on capital
Precious-60,000*6%=3600
Noble-50,000*6%=3000
Perfect-30,000*6%=1800 8400 By net profit
(notes) 1,10,700
To partners salary
Precious-200*12=2400
Noble -300*12=3600 6000 By interest on drawings
4000*4*6%*4.5/12=360*3 1080
To profit share
First 70,000(4:2:1)
Precious-40,000
Noble- 20,000
Perfect-10,000
Balance equally i.e (1,11,780-8400-6000-70,000) =27,380
Precious-9127
Noble-9127
Perfect-9127 70,000
27,380
Total 1,11,780 Total
1,11,780
PARTNERS CAPITAL ACCOUNT
Particulars Precious Noble Perfect Particulars Precious Noble Perfect
To bal c/d 60,000 50,000 30,000 By bal b/d 60,000 50,000 30,000
PARTNERS CURRENT ACCOUNTS
Particulars Precious Noble Perfect Particulars Precious Noble Perfect
To Drawings 16,000 16,000 16,000 By Interest on capital 3,600 3,600 1,800
To Interest on drawings 360 360 360 By partner's salary 2400 3600
To bal c/d 38,767 19,367 4,566 By P&L App A/c 49,127 29,127 19,126
Total 55,127 35,727 20,926 Total 55,127 35,727 20,926