MENU
Question -

Sukesh and Vanita were partners in a firm. Their partnership agreement provides that:
 (i)    Profits would be shared by Sukesh and Vanita in the ratio of 3:2;
(ii)   5% interest is to be allowed on capital;
(iii)  Vanita should be paid a monthly salary of ₹ 600.
The following balances are extracted from the books of the firm, on March 31, 2017.

 

Sukesh

Verma*

 

₹

₹

Capital Accounts

40,000

40,000

Current Accounts

(Cr.)   7,200

(Cr.)   2,800

Drawings

10,850

8,150
Net profit for the year, before charging interest on capital and after charging partner’s salary was ₹ 9,500. Prepare the Profit and Loss Appropriation Account and the Partner’s Current Accounts.



Answer -

Profit and Loss Appropriation Account

Dr.

 

 

 

 

Cr.

Particulars

Amount

₹

Particulars

Amount

₹

Interest on Capital 

 

 

Profit and Loss

 

9,500

Sukesh

2,000

 

 

 

 

Vanita

2,000

4,000

 

 

 

 

 

 

 

 

 

 

 

 

Profit transferred to

 

 

 

 

 

Sukesh’s Current {5,500 × (3/5)}

3,300

 

 

 

Vanita’s Current {28,000 × (2/5)}

2,200

 

 

 

 

 

9,500

 

 

9,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partner’s Capital Account

Dr.

 

 

 

 

Cr.

Particulars

Sukesh

Vanita

Particulars

Sukesh

Vanita

 

 

 

Balance b/d

40,000

40,000

Balance c/d

40,000

40,000

 

 

 

 

40,000

40,000

 

40,000

40,000

 

 

 

 

 

 

 

Partner’s Current Account

Dr.

 

 

 

 

Cr.

Particulars

Sukesh

Vanita

Particulars

Sukesh

Vanita

Drawings

10,850

8,150

Balance b/d

7,200

2,800

 

 

 

Partner’s Salaries

 

7,200

 

 

 

Profit and Loss Appropriation

3,300

2,200

Balance c/d

1,650

6,050

Interest on capital

2,000

2,000

 

12,500

14,200

 

12,500

14,200

 

 

 

 

 

 

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
×