L, M and N are partners in a firm sharing profits & losses in the ratio of 2 : 3 : 5.On April 1, 2016 their fixed capitals were Rs. 2,00,000, Rs. 3,00,000 and Rs. 4,00,000 respectively. Their partnership deed provided for the following:(i) Interest on capital @ 9% per annum.(ii) Interest on Drawings @ 12% per annum.(iii) Interest on partners’ loan @ 12% per annum.On July 1, 2016, L brought Rs. 1,00,000 as additional capital and N withdrew Rs. 1,00,000 from his capital. During the year L, M and N withdrew Rs. 12,000, Rs. 18,000 and Rs. 24,000 respectively for their personal use. On January 1, 2017 the firm obtained a Loan of Rs. 1,50,000 from M. The Net
profit of the firm for the year ended March 31, 2017 after charging interest on M’s Loan was Rs.
85,000. Prepare Profit & Loss Appropriation Account and Partners Capital Account.Aslo send the working
Answers
Answer:
that's how you solve it! hope this helps
Answer:
The Profit & Loss Appropriation Account and Partner's Capital account was prepared and given below:
Explanation:
1. Profit & Loss Appropriation Account for the year ended March 31,2017
Particulars Amount (Rs)
1 (a) To Interest on capital:
L's Current Account 24,750 Rs
M's Current Account 27,000 Rs
N's Current Account 29,250 Rs
81,000
1 (b) To profit transferred to Partner's Current Accounts
L 1,448
M 2,172
N 3,620
7,240
Total : 88,240 Rs
1 (c) By Profit &Loss Account- Net Profit b/d By 85,000
interest on Partner's Drawings
L's current Account 720
M's Current Account 1,080
N's Current Account 1,440
3,240
Total : 88,240
2. Partner's Capital Interest:
Date Particulars L M N
2016
July 1 To bank account 1,00,000
2017
March 31 To Balance c/d 3,00,000 3,00,000 3,00,000
Total 3,00,000 3,00,000 4,00,000
2016
April 1 By balance b/d 2,00,000 3,00,000 4,00,000
July 1 By Bank Account 1,00,000
Total 3,00,000 3,00,000 4,00,000
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