Pony, Sony and Johny were in partnership which they began on 1st April, 2020 with capital contributions
of 80,000; 2 55,600 and 31,800. Sony and Johny are entitled to draw salaries of 5,000 and 2 4,000 pa,
respectively before the division of profits. Interest is allowed on the capitals @ 5% p.a. while it is not
charged on drawings. Of the net profit
, the first * 30,000 is divided in the ratio of 40:35:25 among
them respectively and the balance is shared equally.
Profit for the year ended 31st March, 2021 after debiting the partners salaries, but before charging
interest on capitals was 56,340 and the partners have drawn 26,000 each for personal use.
Prepare Profit and Loss Appropriation Account and Partners' Capital Accounts for the year ended
31st March, 2021.
Answers
Explanation:
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 10000 10000 10000 By bal b/d 40000 30000 30000
By salaries 6000 4000
To bal c/d 39000 32500 29500 By Interest
on capital 2000 1500 1500
By P/L Appropriation A/c 7000 5000 4000
Total 49000 42500 39500
Answer:
Both P/L APPRO. & PARTNERS' CAP A/Cs are provided .
Explanation:
Hope it helps.
