X and Y are partners sharing profit in the
ratio of 2:3 with capitals of Rs. 2,00,000
and Rs. 1,00,000 respectively. Partnership
deed provides interest on
capital @ 6% p. a. and the profit for the
year is Rs 21,000. Pass necessary journal entries.
Answers
Answer:
Explanation:
Journal Entries
Case 1- Profit and Loss A/c Dr. 20,000
To Profit and Loss Appropriation A/c 20,000
(Being profit transferred to p &L app Account)
Profit and loss Appropriation A/c Dr 20,000
To X's capital A/c 8000
To Y's capital A/c 12,000
(Being profit distributed among partners)
Case 2- Profit and loss A/c Dr. 15000
To Profit and Loss Apprpriation A/c 15000
(Being loss transferred to P&L A/c)
X's capital A/c Dr. 6,000
Y's capital A/c Dr. 9000
To profit and loss A/c 15,000
(Being the loss distributed among partners)
No interest on capital is allowed in case of loss.
Case 3- Profit and loss A/c Dr. 21,000
To profit and loss Appropriation A/c 21,000
(Being profit transferred to P&L app account)
Profit and loss appropriation A/c Dr. 18,000
To X's capital A/c 12,000
To Y's capital A/c 6000
(Being interest on capital allowed to partners)
Profit and loss Appropriation A/c Dr. 3000
To X's capital A/c 1200
To Y's capital A/c 1800
(Being the profit distributed among partners)
Case 4- Profit and loss A/c Dr. 20000
To profit and loss Appropriation A/c 20000
(Being the net profit transferred to p&l app account)
Profit and loss Appropriation A/c Dr. 2000
To X's capital A/c 800
To Y's capital A/c 1200
(Being profit distributed among partners)
Profit and loss A/c Dr. 18,000
To X's capital A/c 12,000
To Y's capital A/c 6000
(Being interest allowed)
Case 5- Profit and loss A/c Dr. 18,000
To X's capital A/c 12,000
To Y's capital A/c 6000
(Being interest charged from profit)
X's capital A/c Dr. 6400
Y's capital A/c Dr. 9600
To Profit and loss A/c (18000-2000) 16000
(Being loss transferred to partners account)
Case 6- Profit and loss A/c Dr. 18,000
To X's capital A/c 12,000
To Y's capital A/c 6000
(Being interest allowed to partners)