Question

Problem No.3
The capital balances of Anush and
Tanvi were 16,00,000 and 4,00,000
respectively as on 1st April 2017.
Anush withdrew 60,000 on 1st
October, 2017 and Tanvi withdrew
78,000 on 1st January 2018. Their
partnership deed provided for the
following:
a) Interest on capital @10% p.a.
b) Interest on drawings @8% p.a.
c) Tanvi is entitled to a commission
of 2% on turnover.
d) Anush is entitled to a salary of
50,000 p.m.
e) Salary and commission must be
paid before interst on capital.
During the year ending 31st March,
2018, they had earned a net profit of
8,50,000 before adjusting the above
mentioned provisions of the Deed.
Their turnover for the same period
was 75,00,000.
Prepare profit and loss Appropriation
account for the year ended 31st
March, 2018
12:24 pm​

Answer 1

Explanation:

Problem No.3

The capital balances of Anush and

Tanvi were 16,00,000 and 4,00,000

respectively as on 1st April 2017.

Anush withdrew 60,000 on 1st

October, 2017 and Tanvi withdrew

78,000 on 1st January 2018. Their

partnership deed provided for the

following:

a) Interest on capital @10% p.a.

b) Interest on drawings @8% p.a.

c) Tanvi is entitled to a commission

of 2% on turnover.

d) Anush is entitled to a salary of

50,000 p.m.

e) Salary and commission must be

paid before interst on capital.

During the year ending 31st March,

2018, they had earned a net profit of

8,50,000 before adjusting the above

mentioned provisions of the Deed.

Their turnover for the same period

was 75,00,000.