Question

Sakal and Bikal are partners of a firm sharing profit and loss in their capital
ratio. On 1.1.20 their capitals were Rs. 50,000 and Rs. 1,50,000 respectively. On
31.12.20 profit of the firm was Rs. 70,000. From the following particulars prepare
Profit & Loss Appropriation A/c for the year ended on 31.12.20.
(i) Interest on capital 10% p.a., interest on drawings 12% p.a.
(ii) Sakal is to receive salary @ Rs. 2,000 p.m.
(iii) Bikal is to receive commission @ 2% on sales. (Sales for the year Rs.
10,00,000).
(iv) Partners drawings : Sakal Rs. 4,000 p.m. at the beginning of each month
and Bikal Rs. 5.000 p.m. at the end of each month.​

Answer 1

Profit and Loss Appropriation A/c

Answer:

Profit and Loss Appropriation a/c is attached ;

Working Note :

Interest On Drawings

Sakal :

4,000 × 12 = 48,000

$\to \sf 48000 \times \frac{12}{100} \times \frac{6.5}{12} = 3120$

Bikal :

5,000 × 12 = 60,000

$\sf\to \: 60000 \times \frac{12}{100} \times \frac{5.5}{12} = 3300$

Interest On Capital

Sakal :

$\sf \to \: 50000 \times \frac{10}{100} = 5000$

Bikal :

$\sf\to \: 150000 \times \frac{10}{100} = 15000$

Ratio As per Capital

$\sf \to \: 50000 : 150000 \: = 1 : 3$