Sanjay,mahdav an bijoy are partner in a registered firm. Balances of their capital account as on 1st April,2014 were 25000, 15000 and 5000 respectively. The partnership agreement provides:
1) bijoy shal be credited with a salary of 300 per month....
Answers
Solution of the ques just little bit change in year.
Sanjay, Madhav and Bijoy are partners in a registered firm. Balances of their capital accounts as on 1st April, 2011 were Rs 2,50,000, Rs 1,50,000 and Rs 50,000 respectively.
The partnership agreement provides:
(i) Bijoy shall be credited with a salary of Rs 3,000 per month.
(ii) Interest on capital is allowed @ 10% per annum and interest on drawings is charged @ 15% per annum.
(iii) After providing (i) and (ii) mentioned above and after making a provision for extra remuneration mentioned in this para (iii), Bijoy shall be entitled to 5% of all the profits in excess of Rs 70,000.
(iv) Madhav is to have one-fifth of the profit after charging all amounts under (i) to (iii) above and this para (iv). The balance of profits is to be divided between Sanjay and Bijoy in the ratio of 7: 1 respectively. Bijoy contributed additional capital of Rs 50,000 on 1st October, 2011. Sanjay has withdrawn Rs 20,000 on 1st August, 2011 and Rs 16,000 on 31st December, 2011, whereas Bijoy did not withdraw any amount. Madhav has withdrawn Rs 4,000 at the end of each quarter.
The net profit for the year ended 31st March, 2012 before making above adjustments was Rs 4,05,000. You are required to prepare profit and loss appropriation account for the year ended 31st March, 2012 and partners’ capital accounts. Calculations are to be made to the nearest rupee.
Answer:
Sanjay, Madhav and Bijoy are partners in a registered firm. Balances of their Capital accounts as
on 1st April, 2014 were Rs.25,000, Rs.15,000 and Rs.5,000 respectively. The partnership
agreement provides:
1. Bijoy shall be credited with a salary of Rs.300 per month.
2. Interest on Capital is allowed 10% per annum and interest on drawings is charged @15%
per annum.
3. After providing (i) and(ii) mentioned above and after making a provision for extra
remuneration mentioned in this para (iii). Bijoy shall be entitled to 5% of all the profits in
excess of Rs.7,000.
4. Madhav is to have one-fifth of the profit after charging all amounts under (i) to (iii) above
and in this para (iv). The balance of profits is to be divided between Sanjay and Bijoy in the
ratio of 7:1 respectively.
Bijoy contributed additional capital of Rs.5,000 on 1st October, 2014. Sanjay has withdrawn
Rs.2,000 on 1stAugust, 2014 and Rs.1,600 on 31st December,2014, whereas Bijoy did not
withdraw any amount. Madhav has withdrawn Rs.400 at the end of each quarter.
The net profit for the year ended 31st March, 2015 before making above adjustments was
Rs.40,500.
You are required to prepare profit and loss appropriation account for the year ended 31st
March, 2015 and the partners' capital accounts
