Please allow ads on our site
Please log in to access this content. You will be redirected to the login page shortly.
LoginKabir, Zoravar and Parul are partners sharing profits in the ratio of 5:3:2. Their capitals as on 1st April, 2019were: Kabir - 5,20,000, Zoravar- 3,20,000 and Parul- 2,00,000.The Partnership Deed provided as follows:(1) Kabir and Zoravar each will get salary of 24,000 p.a.(ii) Parul will get commission of 2% of Sales.(iii) Interest on capital is to be allowed @ 5% p.a.(iv) Interest on Drawings is to be charged @ 5% p.a.(v) 10% of Divisible Profit is to be transferred to General Reserve.Sales for the year ended 31st March, 2020 were 50,00,000. Drawings by each of the partners during theyear was 60,000. Net Profit for the year was 1,55,500.Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2020.
Accountancy Secondary School in Accountancy 9 months ago
PROFIT and Loss Appropriation A/c for the year ended 31.3.2020
Explanation:
P&L Appropriation A/c
Particulars Amount(RS.) Particulars Amount(Rs.)
To SALARY to: By NET Profit 1,55,500
KABIR 24,000 By Drawings 1,80,000
Zoravar 24,000 (W.N.3)
By Interest on 9,000
To Sales Comm. 1,00,000 Drawings(W.N 3)
to Parul(W.N 1)
To Interest on 52,000
Capital(W.N 2)
To General 15,550
Reserve(10%)
To Partner A/c-
(5:3:2)
Kabir 64475
Zoravar 38685
Parul 25790
344500 344500
Working Notes:
1)Calculation of Sales Commission to Parul
= Rs.50,00,000 x 2%
= Rs.1,00,000
2) Calculation of Interest on Capital
= (5,20,000 x 5%) + (3,20,000 x 5%) + (2,00,000 x 5%)
= 52,000
3) Calculation of Drawings and Interest on drawings
a) Drawings = 60,000 x 3 = Rs.1,80,000
b) Interest on Drawings = 1,80,000 x 5%
= 9,000
Posted on 15 Nov 2024, this text provides information on Accountancy related to Secondary School in Accountancy. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.
Take Quiz To Earn Credits!
Turn Your Knowledge into Earnings.
Answers
No matter what stage you're at in your education or career, TuteeHub will help you reach the next level that you're aiming for. Simply,Choose a subject/topic and get started in self-paced practice sessions to improve your knowledge and scores.
