MENU
Question -

Amann, Babita and Suresh are partners in a firm. Their profit sharing ratio is 2:2:1. Suresh is guaranteed a minimum amount of ₹ 10,000 as share of profit, every year. Any deficiency on that account shall be met by Babita. The profits for two years ending March 31, 2016 and March 31, 2017 were ₹ 40,000 and ₹ 60,000, respectively. Prepare the Profit and Loss Appropriation Account for the two years.



Answer -

Profit and Loss Appropriation Account for the year ended 31st31st March 2016

Dr.

 

 

 

 

Cr.

Particulars

Amount

₹

Particulars

Amount

₹

Profit transferred to

 

Profit and Loss

40,000

Amann’s Capital  16,000

16,000

 

 

Babita’s Capital (16,000 – 2,000)

14,000

 

 

Suresh’s Capital (8,000 + 2,000)

10,000

 

 

 

 

 

 

 

40,000

 

40,000

 

 

 

 

 

Profit and Loss Appropriation Account for the year ended 31st March 2017

Dr.

 

 

 

 

Cr.

Particulars

Amount

₹

Particulars

Amount

₹

Profit transferred to

 

Profit and Loss

60,000

Amann’s Capital 

24,000

 

 

Babita’s Capital

24,000

 

 

Suresh’s Capital

12,000

 

 

 

 

 

 

 

60,000

 

60,000

 

 

 

 

Comment(S)

Show all Coment

Leave a Comment

Free - Previous Years Question Papers
Any questions? Ask us!
NodeJS Interview Questions Answers
ASP.Net Interview Questions Answers
Interview Questions Answers
×