Question 22 A, B and C were partners in a firm. On 1 st April, 2018 the balance in their capital accounts
stood at Rs. 8,00,000, Rs. 6,00,000 and Rs. 4,00,000 respectively. As per the provisions of the
partnership deed, partners were entitled to interest on capital @ 5% p.a., salary to B Rs. 3,000 per
month and a commission of Rs. 12,000 to C. A's share of profit, excluding interest on capital, was
guaranteed at Rs. 25,000 p.a. B's share of profit, including interest on capital but excluding salary was
guaranteed at Rs. 55,000 p.a. Any deficiency arising on that account was to be met by C. The profits of
the firm for the year ending 31 st March, 2019 amounted to Rs. 2,16,000. Prepare Profit and Loss
Appropriation Account for the year ending 31 st March, 2019.
Answers
Answer:
Explanation:
Profit and loss Appropiate A/c
To Profit transfered By profit & loss a/c 354000
to capital a/c
A 96,000
B 72,000
C 48000
To salary
B 3000*12 = 36000
To Commission 12000
To Interest on capital
A 40000
B 30000( 25000)
C 20000
354000 354000
Answer:
Calculate the amount of Subscription to be credited to Income and Expenditure account for the year 2019-
20.
Particulars Amount (`)
Amount received during the year ( including ` 20,000 for 2018-19 , `30,000 for 7,80,000 2020-21 and `10,000 for 2021-22)
Subscription received in advance as on 01-04-2019 (including `15,000 for 35000 2020-21)
Subscription in arrears as on 01-04-2019 40000
Subscription in arrears as on 31-03-2020 50000
Out of subscription in arrears on 01-04-2019, `15,000 are no longer recoverable.
3
15 Rohit, Raman and Raina are partners in a firm. Their capital accounts on 1st April, 2019, st