Sonu, Sumit and Sahil sharing profits and losses in the ratio of 4: 3:2, decide to ad Nlustration 44 (Treatment of Investments Fluctuation Reserve). Suhail as a new partner with effect from 1st April, 2021. An extract of their Balance She as at 31st March, 2021 is: Liabilities ₹ Assets Investments Fluctuation Reserve 18,000 Investments (At cost) Show the accounting treatment of Investments Fluctuation Reserve under the folloin alternative cases: Case 1. If there is no other information. Case 2. If the market value of Investments is 2,00,000. Case 3. If the market value of Investments is 1,91,000. Case 4. If the market value of Investments is 1,73,000. Case 5. If the market value of Investments is * 2,18,000.
Answers
Answered by
0
Answer:
Total 5,05,000
Explanation:
After the guaranteed profit to Sumit,the remaining profit shall be distributed to Suresh and Sahli will be distributed in the ratio of 5:3.
PROFIT AND LOSS APPROPRIATION ACCOUNT
Particulars Amount Particulars Amount
To Remuneration
(60000*3) 1,80,000 By Net Profit 3,50,000
To Interest on Capital
Suresh- 5,00,000*10%
Sahli- 5,00,000*10%
Sumit- 50,000*10% 1,05,000 By Interest on Drawings
Suresh-10,000
Sahli-20,000
Sumit-25,000 55,000
To Sumit's capital
(Guaranteed Profit) 1,50,000 By Loss transferred to
Suresh-62,500
Sahli- 37,500 1,00,000
Total 5,05,000 Total 5,05,000
Similar questions