Question

Nirmal and Pawan are partners sharing profit in the ratio 3 ratio 2 the form had given loan to Pawan of 500000 on 1st April 2019 interest was to be charged at 10% per annum the form to clone of 200000 from Nirmal on 1st October 2019 before giving effect to the above the form in curd a loss of 10000 for the year ended 31st March
Determine the amount to be transferred to profit and loss appropriation

Answer 1

Answer:

Profit and loss sharing ratio = 3 : 2

Given amount of loan to Pawan = Rs 3,500,000

Interest rate charged = 10%

Value of the loan taken by the firm = Rs 200,000

Loss incurred = Rs 10,000

To find:

The amount to be transferred to Profit and Loss Appropriation Account  = ?

Solution:

The calculation is shown below:

Net loss incurred for the year -Rs 10,000

Add: Interest received on loan taken by the Pawan Rs 350,000

(Rs\ 3,500,000 \times \frac{10}{100})(Rs 3,500,000×10010)

Less: Interest on loan taken by the firm -Rs 12,000

(Rs\ 200,000 \times \frac{6}{100})(Rs 200,000×1006)

Amount transferred  $328,000

Hence, the amount to be transferred to Profit and Loss Appropriation Account  is $328,000

Since the rate is not given for loan taken by the firm so we assume the 6% interest rate

Explanation:

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