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प्रश्न
Anand and Narayanan are partners in a firm sharing profits and losses in the ratio of 5 : 3. On 1st January 2018, their capitals were ₹ 50,000 and ₹ 30,000 respectively. The partnership deed specifies the following:
- Interest on capital is to be allowed at 6% per annum.
- Interest on drawings charged to Anand and Narayanan are ₹ 1,000 and ₹ 800 respectively.
- Interest on drawings charged to Anand and Narayanan are ₹ 1,000 and ₹ 800 respectively.
Give necessary journal entries and prepare profit and loss appropriation account as on 31st December 2018. Assume that the capitals are fluctuating.
उत्तर
| Dr. | Profit and Loss Appropriation Account | Cr. | |||
| Particulars | Amount | Amount | Particulars | Amount | Amount |
| To Interest on Capital | By profit and loss A/c | 35,000 | |||
| Anand: | 3000 | By Interest on drawings: | |||
| Narayanan: | 1800 | 48,000 | Anand: | 1,000 | |
| Narayanan: | 800 | 1,800 | |||
| To share of profit | |||||
| Anand's Capital A/c | 20,000 | ||||
| Narayanan's Capital A/c | 12,000 | 32,000 | |||
| 36,800 | 36,800 | ||||
Journal Entries
| Particulars | L.F. | Debit | Credit |
| Interest on Capital A/c ...........Dr. To Anand's capital A/c To Narayanan's capital A/c [I.O.C @ 6% p.a provided]. |
48,000 - - |
- 3,000 1,800 |
|
| Profit and loss appropriation A/c ..........Dr. To Interest on capital A/c [I.O.C A/c closed]. |
48,000 - |
- 48,000 |
|
| Anand's Capital A/c ...........Dr. Narayanan's Capital A/c ............Dr. To Interest on drawings A/c [I.O.D charged] |
1,000 800 - |
- - 1,800 |
|
| Interest on drawing A/c ..........Dr. To Profit and loss Appropriation A/c [I.O.D transferred] |
1,800 - |
- 1,800 |
|
| Profit and loss appropriation A/c ........Dr. To Anand's Capital A/c To Narayanan's Capital A/c [Profit transferred] |
32,000 - |
- 20,000 12,000 |
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संबंधित प्रश्न
Which of the following is shown in the Profit and loss appropriation account?
Why is the Profit and loss appropriation account prepared?
Sibi and Manoj are partners in a firm. Sibi is to get a commission of 20% of net profit before charging any commission. Manoj is to get a commission of 20% on net profit after charging all commission. Net profit for the year ended 31st December 2018 before charging any commission was ₹ 60,000. Find the commission of Sibi and Manoj. Also, show the distribution of profit.
Dinesh and Sugumar entered into a partnership agreement on 1st January 2018, Dinesh contributing ₹ 1,50,000 and Sugumar ₹ 1,20,000 as capital. The agreement provided that:
- Profits and losses to be shared in the ratio 2 : 1 as between Dinesh and Sugumar.
- Partners to be entitled to interest on capital @ 4% p.a.
- Interest on drawings to be charged Dinesh: ₹ 3,600 and Sugumar: ₹ 2,200
- Dinesh to receive a salary of ₹ 60,000 for the year, and
- Sugumar to receive a commission of ₹ 80,000
During the year ended on 31st December 2018, the firm made a profit of ₹ 2,20,000 before adjustment of interest, salary and commission. Prepare the Profit and loss appropriation account.
Antony and Ranjith started a business on 1st April 2018 with capitals of ₹ 4,00,000 and ₹ 3,00,000 respectively. According to the Partnership Deed, Antony is to get the salary of ₹ 90,000 per annum, Ranjith is to get 25% commission on profit after allowing salary to Antony and interest on capital @ 5% p.a. but after charging such commission. The profit-sharing ratio between the two partners is 1 : 1. During the year, the firm earned a profit of ₹ 3,65,000.
Prepare profit and loss appropriation account. The firm closes its accounts on 31st March every year.
Anand and Narayanan are partners in a firm sharing profits and losses in the ratio of 5:3. On 1st January 2018, their capital was ₹ 50,000 and ₹ 30,000 respectively. The partnership deed specifies the following:
- Interest on capital is to be allowed at 6% per annum.
- Interest on drawings charged to Anand and Narayanan are ₹ 1,000 and ₹ 800 respectively.
- The net profit of the firm before considering interest on capital and interest on drawings amounted to ₹ 35,000.
Give necessary journal entries and prepare profit and loss appropriation accounts as on 31st December 2018. Assume that the capitals are fluctuating.
