ram have 1.5 times more money than shyam.. sohan have 1. 5 times more money than ram.. total money is 76000.find the amount of money ram have?
Answers
Step-by-step explanation:
As the partners capital are fixed,we have to pass entry for additional 1% through current Account.
The following entries should be passes:-
Profit and Loss Appropriation A/c Dr. 6000
To Interest on Capital A/c 6000
(Interest of additional 1% debited to P&L Appropriation Account)
Interest On capital A/c Dr. 6000
To Ram's Current A/c 3000
To Shyam's Current A/c 1000
To Mohan's Current A/c 2000
(Being interest credited to Current account of partners)
Profit and Loss Appropriation A/c Dr (Notes) 1,90,000
To Ram's Current A/c 76,000
To Shyam's Current A/c 38,000
To Mohan's Current A/c 76,000
(Being profits distributed to partners)
Notes: Profit before Interest = 2,50.000
Less:Interest on Capital = (60,000)
Profit after interest = 1,90,000