X and Y entered into partnership on 1st April, 2017 and contributed ₹ 2,00,000 and ₹ 1,50,000 respectively as their capitals. On 1st October, 2017, X provided ₹ 50,000 as loan to the firm. As per the provisions of the partnership Deed:(i) 20% of Profits before charging interest on Drawings but after making appropriations to be transferred to General Reserve.(ii) Interest on capital at 12% p.a. and Interest on Drawings 10% p.a.(iii) X to ger monthly salary of ₹ 5,000 and Y to get salary of ₹ 22,500 per quarter.(iv) X is entitled to a commission of 5% on sales. Sales for the year were ₹ 3,50,000.(v) Profit and Loss to be shared in the ratio of their capital contribution up to ₹ 1,75,000 and above ₹ 1,75,000 equally.The profit for the year ended 31st March, 2018 before providing for any interest was ₹ 4,61,000. The drawings of X and Y were ₹ 1,00,000 and ₹ 1,25,000 respectively.Pass the necessary Journal entries relating to appropriation our of profit and Loss Appropriation Account and the Partners' Capital Accounts.

X and Y entered into partnership on 1st April, 2017 and contributed �

1.	X and Y entered into partnership on 1st April, 2017 and contributed ₹ 2,00,000 and ₹ 1,50,000 respectively as their capitals. On 1st October, 2017, X provided ₹ 50,000 as loan to the firm. As per the provisions of the partnership Deed:(i) 20% of Profits before charging interest on Drawings but after making appropriations to be transferred to General Reserve.(ii) Interest on capital at 12% p.a. and Interest on Drawings 10% p.a.(iii) X to ger monthly salary of ₹ 5,000 and Y to get salary of ₹ 22,500 per quarter.(iv) X is entitled to a commission of 5% on sales. Sales for the year were ₹ 3,50,000.(v) Profit and Loss to be shared in the ratio of their capital contribution up to ₹ 1,75,000 and above ₹ 1,75,000 equally.The profit for the year ended 31st March, 2018 before providing for any interest was ₹ 4,61,000. The drawings of X and Y were ₹ 1,00,000 and ₹ 1,25,000 respectively.Pass the necessary Journal entries relating to appropriation our of profit and Loss Appropriation Account and the Partners' Capital Accounts.
Answer» X and Y entered into partnership on 1st April, 2017 and contributed ₹ 2,00,000 and ₹ 1,50,000 respectively as their capitals. On 1st October, 2017, X provided ₹ 50,000 as loan to the firm. As per the provisions of the partnership Deed: (i) 20% of Profits before charging interest on Drawings but after making appropriations to be transferred to General Reserve. (ii) Interest on capital at 12% p.a. and Interest on Drawings 10% p.a. (iii) X to ger monthly salary of ₹ 5,000 and Y to get salary of ₹ 22,500 per quarter. (iv) X is entitled to a commission of 5% on sales. Sales for the year were ₹ 3,50,000. (v) Profit and Loss to be shared in the ratio of their capital contribution up to ₹ 1,75,000 and above ₹ 1,75,000 equally. The profit for the year ended 31st March, 2018 before providing for any interest was ₹ 4,61,000. The drawings of X and Y were ₹ 1,00,000 and ₹ 1,25,000 respectively. Pass the necessary Journal entries relating to appropriation our of profit and Loss Appropriation Account and the Partners' Capital Accounts.

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