Accountancy, asked by gurjotkaur, 1 year ago

reema and seema are partners sharing profit equally reema and seema get 15000 salary per month interest on capital allowed 5 percent p.a. interest on drawings charged 10 percent p.a. their capital were 500000 each drawing during year 60000 each . firm incurred loss of 100000 prepare profit and loss appropriation account

Answers

Answered by Golda
5

Solution :-

It is not clear in the question that the salary given to each partner is Rs. 15000 or it is total Rs. 15000 to both the partners. I have assumed Rs. 15000 per month to each partner.

Profit and Loss Appropriation Account

For the year ended 31st March .......

Dr. Cr.

____________________________________________________________

Particular Amount Particular Amount

____________________________________________________________

To Profit and Loss A/c 100000 By Interest on Drawing A/c

(Net Loss) Reema (60000 × 10)/100 6000

To Partner's Salary A/c Seema (60000 × 10)/100 6000

Reema (15000 × 12) 180000 By Loss Transferred to

Seema (15000 × 12) 180000 Reema's Capital A/c

(448000 × 1/2) 224000

Seema's Capital A/c

(448000 × 1/2) 224000

__________ _______

460000 460000

__________ _______

There will be no Interest on Capital will be provided because the firm has incurred loss.

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