Question

om
be shared equally.
2,00,000
00,000
o 10.000
2:1. Only
ely. Only
000 in their
rew exces
0. 12. Lata and Mamta are partners with capitals of 33,00,000 and 12,00,000
respectively sharing profits as Lata 70% and Mamta 30%. During the year ended 31st
March 2016 they earned a profit of 32,26,440 before allowing interest on partner's
loan. The terms of partnership are as follows:
(i) Interest on Capital is to be allowed @ 7% p.a.
(ii) Lata to get a salary of 2,500 per month.
(iii) Interest on Mamta's Loan account of 780,000 for the whole year.
(iv) Interest on drawings of partners at 8% per annum. Drawings being Lata
336,000 and Mamta 348,000.
(v) 1/10th of the distributable profit should be transferred to General Reserve.
Prepare the Profit and Loss Appropriation Account.
[Ans. Share of Profit : Lata 1,00,800 and Mamta 43,200.]
Hints:
(i) Interest on Loan will be calculated at 6% p.a.
(ii) Interest on Drawings will be calculated for an average period of 6 months.
(iii) Transfer to General Reserve will be 10% of net profit i.e. 10% of 1,60,000
16,000.​

Answer 1

Answer:

I don't know how to do that.