Question

L;M;N are partners in a firm sharing profit and losses in the ratio 2 : 3 : 5 on April 1 2016 their fixed capital were 200000; 300000; 400000 respectively the partnership deed for the following interest on capital 9% per annum interest on drawing 12% per annum interest on partners loan 12% per annum on July 1 2016 and L brought 1 lakh as additional capital andN withdrew 1 lakh from his capital during the year l; M ;n and withdrew 12000;13000 ;24000 for this person use on January 1 2017 the firm obtained a loan 150000 from long am the net profit for the year ended 31st March 2017 after charging interest on M loan were 85000 prepare Profit and Loss appropriation account and partners capital account for class 12th​

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