Accountancy, asked by jassasaini5856, 9 months ago

Anita, Bimla and Cherry are three partners. On 1st April, 2017, their Capitals stood as: Anita ₹ 1,00,000, Bimla ₹ 2,00,000 and Cherry ₹ 3,00,000. It was decided that:
(a) they would receive interest on Capital @ 5% p.a.
(b) Anita would get a salary of ₹ 5,000 per month.
(c) Bimla would receive commission @ 5% of net profit after deduction of commission, and
(d) 10% of the net divisible profit would be transferred to the General Reserve.
Before the above items were taken into account, the profit for the year ended 31st March, 2018 was ₹ 5,00,000. Prepare Profit and Loss Appropriation Account and the Capital Accounts of the partners.

Answers

Answered by karthika92
2

Explanation:

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Answered by aburaihana123
4

Profit and Loss Appropriation Account and the Capital Accounts of the partners are calculated below:

Explanation:

1. Calculation of Interest on Capital

Interest on Anita's Capital

=1,00,000 \times \frac{5}{100}=5,000

Interest on Bimla's Capital

=2,00,000 \times \frac{5}{100}=10,000

Interest on Cherry's Capital

=3,00,000 \times \frac{5}{100}=15,000

2. Calculation of Commission to Bimla

Commission to Bimla = 5 % on Net Profits after Commission

Commission to Bimla

=Net Profit \times \frac{\text { Rate }}{100+\text { Rate }} =5,00,000 \times \frac{5}{105}=23,810

3. Calculation of Amount to be transferred to General Reserve

Amount for General Reserve 10% of Divisible Profit

=3,86,190 \times \frac{10}{100}\\\\=38,619

Divisible Profit

= Rs. 5,00,000- Rs. 30,000- Rs. 23,810- Rs. 60,000

= Rs. 3,86,190

4. Calculation of Share of Profit of each Partner

Profit available for Distribution

= Rs. 5,00,000- Rs. 30,000- Rs. 23,810- Rs. 60,000-Rs. 3,86,190

= Rs. 3,47,571

Profit Share of Anita, Bimla and Cherry each

=3,47,571 \times \frac{1}{3}=Rs. 1,15,857

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