On 1st April, 2014, Precio
us, Noble and Perfect entered into partnership
with capitals of 60,000; 50,000 and 30,000 respectively.
Perfect advanced 10,000 as loan to the partnership on 1st October, 2014. The
Partnership Deed contained the following clauses :
(i) Interest on capitals @ 6% p.a.
(ii) Interest on drawings @ 6% p.a. Each drew 4,000 at the end of each
quarter commencing from 30th June, 2014.
(iii) Working partners Precious and Noble to get salaries of 200 and 300
per month.
(iv) Interest on loan was given to Perfect @6% p.a.
(v) Profits and losses are to be shared in the ratio of 4:2:1 up to 70,000
and above 70,000 equally.
Net profit of the firm for the year ended 31st March, 2015 (before above
adjustments) was 1,11,000.
Prepare Profit and Loss Appropriation Account and Personal Accounts of the
Partners assuming capitals to be fixed.
Answers
Answer:
Answer:
2.
(Ans. Realisation Profit to A 73,000 and B 21,000, Total Profit - 240.000
Verma and Sharma were partners sharing profits in the ratio of 3 1. On 31-3-2011
their Balance Sheet was as follows:
Balance Sheet of Verma & Sharma (as at 31.3.2011)
Liabilities
Assets
Amount
₹
Amount
3
70.000
Capital :
Verma
Sharma
Creditors
Land and Building
1,20,000
Machinery
80.000 2,00.000 Debtors
70.000 Bank
2.70.000
80.000
60.000
2.70.000
The firm was dissolved on 1-4-2011 and the Assets and Liabilities were setties
follows:
(i) Creditors of 50.000 took over Land and Building in full settlement of their
claim.
(ii) Remaining Creditors were paid in cash.
(iii) Machinery was sold at a depreciation of 30%
(iv) Debtors were collected at a cost of 500
(v) Expenses of realisation were 1.700.