Hamsini and Valsalya are partner sharing profits and losses in the ratio of 3:2. On 1-4-2014 they of Rs. 30,000 and Rs. 20,000 respectively. According to thole partnership deed they are antitled to the following: a) Interest on capital at 6% P.a. b) Interest on Drawings at 5% P.a. c) Vastalya is allowed a salary of Rs. 500 PM for first 6 months and for the remaining period R d) Their drawings during the year Hamsini Rs. 8000 and Valsalya Rs. 10,000. Interest on the The Profil for the year bolore making the above adjustmenle was Rs. 24.600. and Rs. 500 respectively. Prepare P&L appropriation a/c for the year ending 31-3-2015.
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After the guaranteed profit to Sumit,the remaining profit shall be distributed to Suresh and Sahli will be distributed in the ratio of 5:3.
PROFIT AND LOSS APPROPRIATION ACCOUNT
Particulars Amount Particulars Amount
To Remuneration
(60000*3) 1,80,000 By Net Profit 3,50,000
To Interest on Capital
Suresh- 5,00,000*10%
Sahli- 5,00,000*10%
Sumit- 50,000*10% 1,05,000 By Interest on Drawings
Suresh-10,000
Sahli-20,000
Sumit-25,000 55,000
To Sumit's capital
(Guaranteed Profit) 1,50,000 By Loss transferred to
Suresh-62,500
Sahli- 37,500 1,00,000
Total 5,05,000 Total 5,05,000
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