on1st janury 2018 A and B are partners employing capital of 100000 and 120000 respectively on the sama day A gave a loan firm of 45000 the profit of rhe year 45000 how will you divide the profit between the patners in the absence of patnership agreement ? show by preparing profit and loss account.
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Answer:
12th
Accountancy
Accounting for Partnership Firms - Fundamentals
Special Aspects of Partnership Accounts
A and B are partners sharin...
ACCOUNTANCY
A and B are partners sharing profits in the ratio of 3 : 2. with capitals of Rs. 50,000 and Rs. 30,000 respectively. Interest on capital is agreed @ 6% p.a. B is to be allowed an annual salary of Rs. 2,500. During the year profit prior to interest on capital but after charging B's salary amounted to Rs. 12,500. A provision of 5% of the profits is to be made in respect of Manager's Commission. Prepare an account showing the allocation of profits and the Partners' Capital Accounts.
December 26, 2019
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Fardin Kapil
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ANSWER
Profit And Loss Account
Particulars Amount Particulars Amount
To Manager;s
commission
(15000*5/100) 750 By profit before B's Salary
(12500+2500) 15000
To Net profit T/f to
P/L Appropriation
Account 14250
Total 15000 Total 15000
Profit And Loss Appropriation Account
Particulars Amount Particulars Amount
To Interest on capital
A = 50000*6% = 3000
B=30000*6% = 1800 4800 By net profit 14250
B's Salary 2500
To profit T/f to
A's Capital A/c = 4170
B's Capital A/c = 2780 6950
Total 14250 Total 14250
Partners capital account
Particulars A B Particulars A B
By bal b/d 50000 30000
By Int on capital 3000 1800
salary 2500
To bal c/d 57170 37080 By P/L Appr A/c 4170 2780
Total 57170 37080 Total 57170 37080
Answer:
On 1st January, 2018 'A' and 'B' are partners employing capital of 3.1.00,000 and
1,20,000 respectively. On the same day 'A' gave a loan to the firm of 45,000. The
profit of that year is 45,000. How will you divide the profit between the partners in the
absence of partnership agreement? Show by preparing profit and loss account.
A and B are partners from 1st January, 2018 without the partnership agreement and
[Ans. Share of profit: 21,150 each ]