Illustration 54.
Anwar. Biswas and Divya are partners in a firm. Their Capital Accounts stood at 8,00,000;
26,00,000 and 4,00,000 respectively on 1st April, 2013. They shared profits and losses in the
ratio of 3:2:1 respectively. Partners are entitled to interest on capital @ 6% per annum and
salary to Biswas and Divya @ 4,000 per month and 6,000 per quarter respectively as per the
provisions of Partnership Deed.
Biswas's share of profit including interest on capital but excluding salary is guaranteed at
a minimum of 82,000 p.a. Any deficiency arising on that account shall be met by Divya.
Profit for the year ended 31st March, 2014 amounted to 3,12,000. Prepare Profit and Loss
Appropriation Account for the year ended 31st March, 2014.
(Delhi 2013)
Answers
Answer:
Explanation:
Profit & loss Appropiate Account
To Interest on capital
Anwar- 8,00,000*6%=48,000
Biswas-6,00,000*6%=36,000
Divya-4,00,000*6%=24,000 1,08,000 By net profit 3,12,000
To Patner's salary A/c
Biswas-4000*12 = 48,000
Divya-6000*4 = 24,000 72,000
To Profit Transferred to
Anwar's capital A/c- 66000
Biswa's capital A/c -44,000
Add:-Divya's share 2000
Divya = 22,000
Less:deficiency cont =(2000) 1,26,000
Total 312000 Total 312000
working notes
Biswa's share includes share of profit and interest on capital
Share of profit = 44,000
Add;Interest on capital= 36,000
Total = 80,000
Guaranteed amount = 82,000
The deficiency of 2000 is to be borne by Divya.
Explanation:
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