Question

x and y are partners sharing profits in the ratio 3:2 their partnership deed provided for allowing interest on Capital@10% p.a and charging interest on drawing@12%p.a the incomplete profit and loss appropriation account for the year ended 31 mar 2019, partners capital and current accounts are given below​

Answer 1

Answer

(i) Profit and Loss Adjustment a/c

Dr. Cr.

Particulars Amount Particulars Amount

To Manager's

Commission

(30000*5%) 1500 By Profit and loss a/c

(after Y's salary) 24000

To Profit transferred to

Profit and loss appropriation a/c 28500 By Y's salary 6000

30000 30000

(ii) Profit and Loss Appropriation a/c

( for the year ended 31st March, 2018)

Dr. Cr.

Particulars Amount Particulars Amount

To Salary to Y 6000 By Profit and Loss Adjustment a/c 28500

To Interest on Capital:

- X's Capital a/c

- Y's Capital a/c

4000

3000

To Profit transferred to:

- X's Capital a/c

- Y's Capital a/c

9300

6200

28500 28500