Question

Kabir, Zoravar and Parul are partners sharing profits in the ratio of 5:3:2. Their capitals as on 1st April, 2019
were: Kabir - 5,20,000, Zoravar- 3,20,000 and Parul- 2,00,000.
The Partnership Deed provided as follows:
(1) Kabir and Zoravar each will get salary of 24,000 p.a.
(ii) Parul will get commission of 2% of Sales.
(iii) Interest on capital is to be allowed @ 5% p.a.
(iv) Interest on Drawings is to be charged @ 5% p.a.
(v) 10% of Divisible Profit is to be transferred to General Reserve.
Sales for the year ended 31st March, 2020 were 50,00,000. Drawings by each of the partners during the
year was 60,000. Net Profit for the year was 1,55,500.
Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2020.​

Answer 1

Answer:

Explanation:

                                 PROFIT & LOSS A/C                                                              

To profit share                            By  Net profit                          1555000

Kabir 40000                                 By interest on drawing

zoravar 32000                                  Kabir   1500

Parul   88000       160000               Zoravar  1500  

                                                          Parul      1500                       4500

                                                                                                                         

                           160000                                                             160000