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On 1st April, 2013, Jay and Vijay entered into partnership for supplying laboratory equipments to government schools situated in remote and backward areas. They contributed capitals of ₹ 80,000 and ₹ 50,000 respectively and agreed to share the profits in the ratio of 3 : 2. The partnership Deed provided that interest on capital shall be allowed at 9% per annum. During the year the firm earned a profit of ₹ 7,800. Showing your calculations cleary, prepare Profit and Loss Appropriation Account of Jay and Vijay for the year ended 31st March, 2014.

Answer»

and LOSS Appropriation amount is shown below:Explanation:Capital Jay CONTRIBUTED = RS. 80,000 Capital Vijay contributed = Rs. 50,000 Interest allowed is given as 9% per annum. Calculation of Interest Interest on Jay’s capital Interest on Vijay’s capital TOTAL interest will be 7,200 + 4,500 = Rs, 11,700 Total profit earned is Rs. 7,800 Calculation of PROPORTIONATE interest Now, proportionate interest on the capital will be: For Jay For Vijay



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