Question

Q.7. On 1 January, 2007 Vibhore and Vedang were partners. There capital was
Rs. 5,950 and Rs. 3,400 respectively. There was no partnership deed. On 1st August,
2001 Vibhore gave a loan of Rs. 1,275 to the firm. Profit during the year 2007 was
Rs. 2,296.28. Prepare profit and loss appropriation account.​

Answer 1

in the ratio of 2:2:1. Their capital balances on 01.04.2017 stood at rs 90000, rs 60000 and rs 40000

Answer 2

Answer:

Calculation of Interest on capital

A = 30000*5% = 1500

B= 20000*5% = 1000

C= 10000*5% = 500

Salary to B = 500*12=6000

Calculation of C's commission = 30000-3000 = 27000*5/100= 1350

Profits to be distributed= 30000-3000-6000-1350 = 19,650

The adjustment entry to be passed is as follows:-

A's Capital A/c Dr. 3675

To B's capital A/c 2895

To C's capital A/c 780

(Being adjustment entry passed)

Table Showing Adjustment To be Made

A B C

Interest on capital 1500 1000 500

Salary 6000

Commission 1350

Profits to be distributed( 19650) 9825 5895 3930

Total 11325 12895 5780

Less: profits wrongly allocated (15000) (10000) (5000)

Adjustments (3675) 2895 780