Question

Ram, raheem and peeter are partners Their capital on 1st January 2018 are respectively Rs 40,000 Rs 32,000 and Rs 20,000 peeter is to be allowed salary of Rs 750 per month Interest is payable on capital @ 6 percent per annum the profit after charging salary and Interest will be distributed as under- (1) First Rs 20,000 in the ratio of 9:8:3 (2) Next Rs 10,000 in the ratio of 4:3:3: (3) balance of profit in the ratio of 2:1:1 before above adjustments the profit of the firm was RS 46,920 prepare profit and loss Appropriation A/C and a statement showing the distribution of profit among the partners​

Answer 1

Explanation:

Answer

Profit And Loss Account

Particulars Amount Particulars Amount

To Manager;s

commission

(15000*5/100) 750 By profit before B's Salary

(12500+2500) 15000

To Net profit T/f to

P/L Appropriation

Account 14250

Total 15000 Total 15000

Profit And Loss Appropriation Account

Particulars Amount Particulars Amount

To Interest on capital

A = 50000*6% = 3000

B=30000*6% = 1800 4800 By net profit 14250

B's Salary 2500

To profit T/f to

A's Capital A/c = 4170

B's Capital A/c = 2780 6950

Total 14250 Total 14250

Partners capital account

Particulars A B Particulars A B

By bal b/d 50000 30000

By Int on capital 3000 1800

salary 2500

To bal c/d 57170 37080 By P/L Appr A/c 4170 2780

Total 57170 37080 Total 57170 3708