MENU
Question -

Ashok, Brijesh and Cheena are partners sharing profits and losses in the ratio of 2: 2: 1. Ashok and Brijesh have guaranteed that Cheena share in any year shall be less than ₹ 20,000. The net profit for the year ended March 31, 2017 amounted to ₹ 70,000. Prepare Profit and Loss Appropriation Account.



Answer -

Profit and Loss Appropriation Account as on March 31, 2017

Dr.

 

 

 

 

Cr.

Particulars

Amount

₹

Particulars

Amount

₹

Profit transferred to

 

 

Profit and Loss 

70,000

Ashok’s Capital

28,000

 

 

 

Less: Cheena’s share of deficiency {6,000 × (1/2)}

(3,000)

25,000

 

 

 

 

 

 

 

Brijesh’s Capital

28,000

 

 

 

Less: Cheena’s share of deficiency {6,000 × (1/2)}

(3,000)

25,000

 

 

 

 

 

 

 

Cheena’s Capital

14,000

 

 

 

Add: Deficiency received from

 

 

 

 

Ashok

3,000

 

 

 

Brijesh

3,000

20,000

 

 

 

 

 

 

 

70,000

 

70,000

  

 

 

 

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
×