Amit, Binita and Charu are three partners. On 1st April, 2017, their Capitals stood as: Amit ₹ 1,00,000, Binita ₹ 2,00,000 and Charu ₹ 3,00,000. It was decided that: (a) they would receive interest on Capital @ 5% p.a. (b) Amit would get a salary of ₹ 10,000 per month. (c) Binita would receive commission @ 5% of net profit after deduction of commission, and (d) 10% of the net profit would be transferred to the General Reserve. Before the above items were taken into account, the profit for the year ended 31st March, 2018 was ₹ 5,00,000. Prepare Profit and Loss Appropriation Account and the Capital Accounts of the partners.

Amit, Binita and Charu are three partners. On 1st April, 2017, their C

1.	Amit, Binita and Charu are three partners. On 1st April, 2017, their Capitals stood as: Amit ₹ 1,00,000, Binita ₹ 2,00,000 and Charu ₹ 3,00,000. It was decided that: (a) they would receive interest on Capital @ 5% p.a. (b) Amit would get a salary of ₹ 10,000 per month. (c) Binita would receive commission @ 5% of net profit after deduction of commission, and (d) 10% of the net profit would be transferred to the General Reserve. Before the above items were taken into account, the profit for the year ended 31st March, 2018 was ₹ 5,00,000. Prepare Profit and Loss Appropriation Account and the Capital Accounts of the partners.
Answer» Explanation:PROFIT & LOSS APPROPIATE A/CTo Interest on Capital By Profit & loss A/c 5,00,000Amit 5000Binita 10000Charu 15000 30000To Salary to amit 120000To commission 23810To General Reserve 50000To profit transfered Amit A/c 92063Binita A/c 92063Charu A/c 92064 276190------------------------------------------------------------------------------------------------------------- 5,00,000 5,00,000 PATNERS CAPITAL ACCOUNTParticulars Amit Binita charu Particulars Amit Binita CharuTo BAL C/d 317063 325873 407064 By bal b/d 100000 200000 300000 By Interest on Capital 5000 10000 15000 By salary A/c 1,20,000 By Commision 23810 By P&l A/c 92063 92063 92064-------------------------------------------------------------------------------------------------------------- 317063 325873 407064 317063 325873 407064

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