Question

Aseem and Nihar started business on 1st April, 2019 with capitals of * 3,00,000 and 2,00,000
respectively. According to the Partnership Deed, Nihar is to get salary of 5,000 per month,
Aseem is to get 10% commission on Profit after allowing salary to Nihar and interest is to be
allowed on capitals @ 6% p.a. Profit-sharing ratio between the two partners is 3:2. During the
year,
the firm earned profit of 2,50,000.
Aseem had given loan of 1,00,000 to the firm on 1st April, 2019. Interest on loan was allowed
@8% p.a. Nihar was given loan of 2,00,000 on which interest was charged 11,000. Manager
was to be allowed commission of 3,000.
Pass Journal entries for distribution of profit and prepare Profit and Loss Appropriation
Account. The firm closes its books of account on 31st March every year.​

Answer 1

Explanation:

please refer to attachment hope it helps

Answer 2

Answer:

Profit & Loss Appropriation A/c Dr.  20,000

To Simran’s Current A/c    10,000

To Reema’s Current A/c    10,000

(Interest on capital transferred to Profit & Loss Appropriation A/c)    

   

Profit & Loss Appropriation A/c   2,80,000

To Simran’s Current A/c    1,68,000

To Reema’s Current A/c    1,12,000

(Profit transferred to Partners’ Current A/c)    

Explanation:

In accordance with the provisions of the partnership deed, the profits and losses made by the firm are distributed among the partners. However, sharing of profit and losses is equal among the partners, if the partnership deed is silent.

However, certain adjustments such as interest on drawings & capital, salary & commission to partners are required to be made. For this purpose, it is customary to prepare a Profit and Loss Appropriation Account of the firm. The final figure of profit and loss to be distributed among the partners is ascertained by Profit and Loss Appropriation Account.

To learn more about partnership deed visit

https://brainly.in/question/35033625

https://brainly.in/question/23805487

#SPJ1