Question

pro
is 160,000. What will be Ankita share in profit?
Q.3. A and B contribute 01,00,000 and 160,000 respectively in a partnership firm by way of capital
on which they agree to allow interest @ 8% p.a. Their profit or loss sharing ratio is 3:2. The profit at
the end of the year was 12,800 before allowing interest on capital. If there is a clear agreement that
interest on capital will be paid even in case of loss. Prepare P&L appropriation account​

Answer 1

Answer:

p/L app. a/c

Dr. Cr.

particulars amt particulars amt

To int. on cap :- By net profit 12800

A = 8000 By partners cap A/c(b/f)

B=12800 20800 A = 4800

B = 3200 8000

20800 20800

WN:-

1. int. on cap. :-

A= 100000×8/100=8000

B= 160000×8/100= 12800

2. partners cap a/c:-

A =8000×3/5 = 4800

B= 8000×2/5 =3200