Question

Q. 18. Pooja and Archna are partners in a firm sharing profits and losses in the
ratio of 2 : 1. Their capital accounts as on 1st April, 2013 stand at 370,000 and 30,000
respectively. The partners are allowed interest on capital @ 10% p.a. The drawings of
the partners during the year ended 31st March, 2014 amounted to 74,800 and 3,600
respectively. Interest is charged on drawings at the rate of 10% p.a.
Pooja has given a loan to firm as on 1st November, 2013 of 20,000.
The profit of the firm for the year ended 31st March, 2014 before above
adjustments was 180,000. 10% of this profit is to be kept in a Reserve Account.
Current A/c balances on 1st April, 2013 were Pooja 5,000 (Cr.); Archna 23,000
(Dr.).
Prepare Profit and Loss Appropriation Account and Partner's Current Accounts.
[Ans. Divisible Profit : 361,920; Current Accounts Balances : Pooja : 48,240
(Cr.) and Archna : 3,140 (Dr.).]
[Hints : (1) Interest on Pooja's Loan will be allowed at 6% p.a.
(2) The amount of Loan and the interest on loan is not recorded on Capital Accounts
or Current Accounts.
(3) 10% of 80,000, i.e., 78,000. will be shown on the debit side of P & L
Appropriation A/c as Reserve.
(4) Interest on drawings will be calculated for six months, as the date of drawings are
not given.]​

Answer 1

Answer:

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