Question

P, Q, R have been in business for ten years. They have shared profits equally. On 31st
Dec. 2017 they agree that R will take a 1/5 share of profits from 1st January 2018,
because of old age. Partners agree that the goodwill should be valued at * 6,000. Give
A
9 P 2 O​

Answer 1

Answer:

Profit And Loss Appropriation Account

 Particulars Amount Particulars Amount To Interest on capital

P = 40000*5%=2000

Q=30000*5%=1500

R=30000*5%=1500 5000 By net profit(after salary) 21000 To Profit T/f to

First 10000

P=10000*50%=5000

Q=10000*30%=3000

R=10000*20%=2000

Remaining 6000

Equally i.e each 2000 16000   Total 21000 Total 21000                                  PARTNERS CAPITAL ACCOUNT Particulars P Q R Particulars P Q R To drawings 1000010000 10000 By bal b/d40000 30000 30000     By salaries  6000 4000 To bal c/d39000  32500 29500 By Interest

on capital 2000 1500 1500     By P/L Appropriation A/c 70005000  4000         Total 4900042500  39500