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प्रश्न
Net profit is ______.
विकल्प
Debited to capital account
Credited to capital account
Debited to drawings account
Credited to drawings account
उत्तर
Net profit is credited to capital account.
APPEARS IN
संबंधित प्रश्न
Answer in one sentence only.
In the absence of partnership deed, what is profit sharing ratio of the partners?
Give the word / term or phrase which can substitute the following statement.
The accounts which are prepared at the end of each financial year.
Give the word / term or phrase which can substitute the following statement.
The statement showing list of all ledger balances.
State whether the following statement is True or False.
Credit balance of profit and loss account shows net profit of the business.
Kajol and Sunny were partners sharing profits and losses in the ratio of 3:2. The following Balances were extracted from the books of account for the year ended March 31, 2015.
|
Account Name |
Debit Amount Rs |
Credit Amount Rs |
|
Capital |
|
|
|
Kajol |
|
1,15,000 |
|
Sunny |
|
91,000 |
|
Current accounts [on 1-04-2005*] |
|
|
|
Kajol |
|
4,500 |
|
Sunny |
3,200 |
|
|
Drawings |
|
|
|
Kajol |
6,000 |
|
|
Sunny |
3,000 |
|
|
Opening stock |
22,700 |
|
|
Purchases and Sales |
1,65,000 |
2,35,800 |
|
Freight inward |
1,200 |
|
|
Returns |
2,000 |
3,200 |
|
Printing and Stationery |
900 |
|
|
Wages |
5,500 |
|
|
Bills receivables and Bills payables |
25,000 |
21,000 |
|
Discount |
400 |
800 |
|
Salaries |
6,000 |
|
|
Rent |
7,200 |
|
|
Insurance premium |
2,000 |
|
|
Traveling expenses |
700 |
|
|
Sundry expenses |
1,100 |
|
|
Commission |
|
1,600 |
|
Debtors and Creditors |
74,000 |
78,000 |
|
Building |
85,000 |
|
|
Plant and Machinery |
70,000 |
|
|
Motor car |
60,000 |
|
|
Furniture and Fixtures |
15,000 |
|
|
Bad debts |
1,500 |
|
|
Provision for doubtful debts |
|
2,200 |
|
Loan |
|
25,000 |
|
Legal expenses |
300 |
|
|
Audit fee |
900 |
|
|
Cash in hand |
7,500 |
|
|
Cash at bank |
12,000 |
|
|
|
5,78,100 |
5,78,100 |
Prepare final accounts for the year ended March 31,2015, with following adjustments:
(a) Stock on March 31,2015 was Rs37,500.
(b) Bad debts Rs3,000; Provision for bad debts is to be made at 5% on debtors
(c) Rent Prepaid were Rs1,200.
(d) Wages outstanding were Rs 2,200.
(e) Interest on capital to be allowed on capital at 6% per annum and interest on drawings to be charged @ 5% per annum.
(f) Kajol is entitled to a Salary of Rs 1,500 per annum.
(g) Prepaid insurance was Rs 500.
(h) Depreciation was charged on Building, @ 4%; Plant and Machinery, @ 5%; Motor car, @ 10% and furniture and fixture, @ 5%.
(i) Goods worth Rs 7,000 were destroyed by fire on January 20,2015. The Insurance company agreed to pay Rs 5,000 in full settlement of the claim.
*As per the question, this year should be 01-04-2014
Select the most appropriate alternative from those given below and rewrite the statement.
All indirect expenses are debited to ____________ account.
Select the most appropriate alternative from the given below and rewrite the statement.
If any asset is taken over by a partner from the firm, his capital account will be ______
Satish and Pradeep are partners in a partnership firm, sharing profit and losses equally. From the following Trial Balance and Adjustment given below, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March 2013 and Balance sheet as on that date.
Balance Sheet as on 31st March 2013
| Debit Balance | Amount (₹) | Credit Balance | Amount (₹) |
| Purchases | 220000 | Partners' Capital | |
| Sundry Debtors | 45000 | Satish | 120000 |
| Discount | 4000 | Pradeep | 90000 |
| Opening stock | 25000 | Sales | 430000 |
| Wages and salaries | 23000 | Sundry Creditors | 85000 |
| Manufacturing expenses | 25500 | Discount | 3500 |
| Factory Building | 175000 | ||
| Plant and Machinery | 75000 | ||
| Advertisement (for 2 yrs w.e.f. 1.1.13) | 10000 | ||
| Salary and wages | 45000 | ||
| Cash in hand | 15000 | ||
| 10 % Govt. Bonds (purchased on 01.07.2012) | 60000 | ||
| Warehouse Rent | 6000 | ||
| 728500 | 728500 |
Adjustments :
(1) The closing stock was valued at the market price at ₹ 92000, which is 15 % above its cost price.
(2) Depreciation machinery at 10 % p.a.
(3) Outstanding wages were ₹ 2500
(4) Maintain R.D.D. at 5 % on sundry debtors.
What is the need for preparing final accounts?
Arvind and Anand are partners sharing profits and losses in the ratio 8 : 3 : 1 Balances in their capital accounts on April 01, 2019 were, Arvind- Rs. 4,40,000 and Anand Rs. 2,60,000. As per their agreement, partners were entitled to interest on capital @ 5% p.a., and interest on drawings was to be charged @ 6% p.a. Arvind was allowed an annual salary of Rs. 35,000/- for the additional responsibilities taken up by him. Partners drawings for the year were, I Arvind Rs. 40,000 and Anand Rs. 28,000. Profit and loss account of the firm for the year ending March 31, 2020 showed a Net Loss of Rs. 32,400. Prepare Profit and Loss Appropriation Account.
