Question

On 1st April, 2013, Jay and Vijay entered into partnership for supplying laboratory equipments to government schools situated in remote and backward areas. They contributed capitals of ₹ 80,000 and ₹ 50,000 respectively and agreed to share the profits in the ratio of 3 : 2. The partnership Deed provided that interest on capital shall be allowed at 9% per annum. During the year the firm earned a profit of ₹ 7,800. Showing your calculations cleary, prepare Profit and Loss Appropriation Account of Jay and Vijay for the year ended 31st March, 2014.

Answer 1

Profit and loss Appropriation amount is shown below:

Explanation:

Capital Jay contributed = Rs. 80,000

Capital Vijay contributed = Rs. 50,000

Interest allowed is given as 9% per annum.

Calculation of Interest

Interest on Jay’s capital

$= 80,000 \times \frac {9}{100} = Rs. 7,200$

Interest on Vijay’s capital

$= 50,000 \times \frac {9}{100}\\\\ = Rs. 4,500$

Total interest will be 7,200 + 4,500 = Rs, 11,700

Total profit earned is Rs. 7,800

Calculation of Proportionate interest

Now, proportionate interest on the capital will be:

For Jay

$= \frac {7,200}{11,700} \times 7,800 = Rs. 4,800$

For Vijay

$= \frac {4,500}{11,700} \times 7,800 = Rs. 3,000$

Answer 2

Answer:

hope  it helps you

Explanation:

Jay. vijay.

Bal c/d 80000 , 5000 =130000

IOC = 7200 , 4600 = 11800

net profit. = 4680 , 3120 = 7200

profit distb. = 66600, 44400