kanu and shruti are partners .they are sharing their profits in the ratio of 3:2. interest on capital is agreed @8%per aanum .shruti is to be allowed an annul salary of rs. 6000. during 2019 the profits of firm priror to calculation of interest on capital and before charging shruti salary amounted to rs.22000.a provision of5%of given profits is to be madein respect of manager s commission. prepare profit and loss appropriation account and partners capital accounts.
Answers
Explanation:
Profit And Loss Account
Particulars Amount Particulars Amount
To Manager;s
commission
(15000*5/100) 750 By profit before B's Salary
(12500+2500) 15000
To Net profit T/f to
P/L Appropriation
Account 14250
Total 15000 Total 15000
Profit And Loss Appropriation Account
Particulars Amount Particulars Amount
To Interest on capital
A = 50000*6% = 3000
B=30000*6% = 1800 4800 By net profit 14250
B's Salary 2500
To profit T/f to
A's Capital A/c = 4170
B's Capital A/c = 2780 6950
Total 14250 Total 14250
Partners capital account
Particulars A B Particulars A B
By bal b/d 50000 30000
By Int on capital 3000 1800
salary 2500
To bal c/d 57170 37080 By P/L Appr A/c 4170 2780
Total 57170 37080 Total 57170 37080
Answer:
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