Partnership Final
(5) Shradha and Sneha carried on business sharing profits and losses in the proportion of a 2. The
partnership agreement provided that: (a) Interest be altowed o 15% pm. on ompltals, which are fixed
(b) Shradha is to get salary or ? 1,000/- per month and Sneha is given 2% commission on gross profile
Trial balance as on 31st March, 2007
Particulars
30.000
3,00.000
Opening Stock
Purchases & Sales
Retums
Debtors & Creditors
Goodwill
Bills Aedelvable & My Payable
5,000
24,000
58 700
5,000
4 500
18.000
3,000
14,000
28.000
18,000
62.000
12,000
4,500
6,400
2,200
1.250
Carriage Inward
Salaries
Freehold Premises
Sumiture
Kimchinery
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(paid on 1st July 2006 for 6 years)
Orice Expenses
Insurance (paid upto 30th June, 2007)
Rent (upto 28th February, 2007)
Bad Debts
Cash in Hand
Cash at Bank
Capital Aes. :
Shradha
Sneha
Current Ale :
Shradha
Shena
Provision for Bad Debts
Reserve for Discount on Debtors
Reserve for Discount on Creditors
18% Bank Loan (taken on 1st August, 2006)
14.900
26,100
42,000
42.000
4,550
3,500
5.500
4.800
50.000
5,70,850
5,70,850
Adjustments:
(1) On 31st March, 2007, stock was valued at 50,000.
(2) Goods of 1,000 supplied to Sneha were included in Sundry Debtors.
(3) Provide * 1,500 for bad debts and maintain reserve for bad and doubtful debts @ 5%. Reserve for discount on
debtors and creditors are maintained at 2% and 3% respectively.
(4) Typewriter of 4,000 purchased on 1st July, 2006 was wrongly included in purchases. Provide for its
depreciation @ 10% p.a. Provide depreciation on Freehold Premises @ 20%, Furniture @ 10% and Machinen
@ 15%
5) Goods worth ? 15,000 destroved by fire and insurance company admittent claim for 10,000
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ACCOUNTANCY
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Asked on December 26, 2019 by
Monalisa Gaikwad
A and B are partners sharing profits and losses In the ratio of 3 : 1. On 1st April, 2017; their capitals were: A Rs. 50,000 and B Rs. 30,000. During the year ended 31st March, 2018 they earned a net profit of Rs. 50,000. The terms of partnership are:
(a) Interest on capital is to be allowed @ 6% p.a.
(b) A will get a commission @ 2% on turnover.
(c) B will get a salary of Rs. 500 per month.
(d) B will get commission of 5% on profits after deduction of all expenses including such commission.
Partners' drawings for the year were: A Rs. 8,000 and B Rs. 6,000. Turnover for the year was Rs. 3,00,000.
After considering the above facts, you are required to prepare Profit and Loss Appropriation Account and Partners' Capital Accounts.
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ANSWER
PROFIT AND LOSS APPROPRIATION ACCOUNT
Particulars Amount Particulars Amount
To Int on capital
A=50000*6%
= 3000
B=30,000*6%
= 1800 4800 By net profit 50000
To Commission
A=300000*2% 6000
To Salary
B=500*12 6000
To Commission
B(notes) 1581
To profits t/f to
A's Capital A/c= 23714
B's Capital A/c=7905 31619
Total 50000 Total 50000
PARTNERS CAPITAL ACCOUNT
Particulars A B Particulars A B
To drawings 8000 6000 By bal b/d 50000 30000
By Int on
capital 3000 1800
By commission 6000 1581
To bal c/d 74714 35286 By P/L app A/c 23714 7905
Total 82714 41286 Total 82714 41286
Notes:- Commission to B= 5% of profits after all expenses including such commission
= 50,000-4800-6000-6000
= 33,200*5/105 = 1581.
Answer:
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