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A & B are partners sharing profits in the ratio of 3:2 with capitals of Rs. 50000/- and Rs. 30000/- respectively. Interest on capital is agreed @ 6% p.a., B is to be allowed an annual salary of rs. 2500.A provision of 5% of net profit is to be made in respect of Manager's Commission and rent of Rs.24000 is to be accounted being payable to A. Profit for the year before manager's commission andrent to A was Rs. 39000/-Prepare Profits & loss Appropriation account and the partners Capital Accounts. |
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Answer» tion:Profit And Loss Account Particulars AMOUNT Particulars AmountTo Manager;s commission(15000*5/100) 750 By profit before B's Salary(12500+2500) 15000To NET profit T/f toP/L AppropriationAccount 14250 Total 15000 Total 15000 Profit And Loss Appropriation Account Particulars Amount Particulars Amount To INTEREST on capitalA = 50000*6% = 3000B=30000*6% = 1800 4800 By net profit 14250 B's Salary 2500 To profit T/f TOA's Capital A/c = 4170B's Capital A/c = 2780 6950 Total 14250 Total 14250 Partners capital account Particulars A B Particulars A B By bal b/d 50000 30000 By Int on capital 3000 1800 salary 2500 To bal c/d 57170 37080 By P/L Appr A/c 4170 2780 Total 57170 37080 Total 57170 37080 |
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