Question

Hunny and Money are partner
They have areserve of 30,000 want to admit Ravi to
pript They​

Answer 1

Answer:

ANSWER

Partners Capital A/c

Dr X Y X Y

To drawings 100000 125000 By Balance b/d 200000 150000

To interest on

drawings 10000 12500 By Interest on capital 24000 18000

By Salary 60000 90000

By Commission 17500 Nil

By profits 124350 99,350

To balance c/d 315850 219850

Profit distribution up to 1,75,000 in the ratio of 4:3 i.e capital ratio and above equally distributed.

Profit And Loss Appropriation Account

Notes :

To interest on Capital

X= 2,00,000*12%

= 24,000

Y= 1,50,000*12%

= 18,000 42000 By net profit 4,61,000

X's salary = 5,000*12

= 60,000

Y's salary = 22,500*4

= 90,000 150000 By interest on drawings

X=1,00,000*10%

= 10,000

Y = 1,25,000*10%

= 12,500

X's Commission

(3,50,000*5%) 17,500

To General reserve

(Notes) 50,300

Share of profits

Up to 1,75,000

X = 1,00,000

Y=75,000

Remaining 48,700

X= 24,350

Y=24,350

Total 4,85,500 Total 4,83,500

Notes :

General Reserve transfer = 20% of Profits before charging Interest on Drawings but after making appropriations

Profit for the year Rs. 461000

Less : Interest on capital (42000)

Less : X's commission (17500)

Less : Salary of X & Y (150000)

Profit available for transfer of general reserve 251500

Profit transfer to general reserve = 20% of Rs. 251500 = Rs. 50300.