Question

L , M and N were partners in a firm sharing profits in the ratio of 3:4:5 .Their fixed capitals were L- RS. 4,00,000 , M- Rs. 5,00,000 and N - Rs. 6,00,000 respectively.The partnership deed provided for the following:-
(a) Interest on Capital @ 6% p.a.
(b) Salary of Rs. 30,000 p.a. to N.
(c) Interest on drawings will be charged 12% p.a.
During the year ended 31st March ,2009 the firm earned a profit of Rs.2,70,000. L withdrew Rs. 10,000 on 1st April 2008 , M withdrew Rs. 12,000 on 30th September 2008 and N withdrew Rs.15,000 on 31st December ,2008 . Prepare Profit and Loss Appropriation Account for the year ended 31st March ,2009​

Answer 1

Answer:

Explanation:

Profit & loss Appropriation Account

( March 31, 2017)

To interest on capital                                            81000

• L's Current  Account  27450
• M's current Account  27000
• N's Current Account  29250

To profit transferred to partners current Account    7240

• L         1448
• M        2172
• N         3620

Total                                                                  88240

By  Profit & loss Account                                   85000

By interest on Partners drawings                        3240

• L's Current  Account    720
• M's current Account    1080
• N's Current Account    1440

Total                                                                          88240

Answer 2

          Profit and Loss Appropriation Account for the year ended 2009

Debit Hand Side

To Interest on Capital  81,000

• L's Current Account  27450
• M's Current Account 27000
• N's Current Account 29250

To profit transferred to partners current account 7,240

• L's Current Account  1,448
• M's Current Account 2,172
• N's Current Account 3,620

Total 88,240

Credit Hand Side

By profit and loss account 85,000

By interest on partners drawing   3240

• L's Current Account  720
• M's Current Account 1080
• N's Current Account 1440

Total 88,240