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प्रश्न
Ramesh and Suresh were partners in a firm sharing profits in the ratio of their capitals contributed on commencement of business which were Rs 80,000 and Rs 60,000 respectively. The firm started business on April 1, 2016. According to the partnership agreement, interest on capital and drawings are 12% and 10% p.a., respectively. Ramesh and Suresh are to get a monthly salary of Rs 2,000 and Rs 3,000, respectively.
The profits for year ended March 31, 2017 before making above appropriations was Rs 1,00,300. The drawings of Ramesh and Suresh were Rs 40,000 and Rs 50,000, respectively. Interest on drawings amounted to Rs 2,000 for Ramesh and Rs 2,500 for Suresh. Prepare Profit and Loss Appropriation Account and partners’ capital accounts, assuming that their capitals are fluctuating.
उत्तर
Profit and Loss Appropriation Account |
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Dr. |
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|
|
Cr. |
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Particulars |
Amount (Rs.) |
Particulars |
Amount (Rs.) |
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Interest on Capital : |
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|
Profit and Loss |
1,00,300 |
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Ramesh |
9,600 |
|
Interest on Drawings : |
|
|||
Suresh |
7,200 |
16,800 |
Ramesh |
2,000 |
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||
|
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Suresh |
2,500 |
4,500 |
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Partners’ Salaries : |
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|
|
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Ramesh |
24,000 |
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|
|
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Suresh |
36,000 |
60,000 |
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|
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Profit Transferred to : |
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|
|
|
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Ramesh’s Capital {28,000 × (4/7)} |
16,000 |
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|
||||
Suresh’s Capital {28,000 × (3/7)} |
12,000 |
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||||
|
|
1,04,800 |
|
1,04,800 |
Partners’ Capital Account |
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Dr. |
|
|
|
|
Cr. |
Particulars |
Ramesh |
Suresh |
Particulars |
Ramesh |
Suresh |
Drawings |
40,000 |
50,000 |
Cash |
80,000 |
60,000 |
Interest on Drawings |
2,000 |
2,500 |
Interest on Capital |
9,600 |
7,200 |
Balance c/d |
87,600 |
62,700 |
Partners’ Salaries |
24,000 |
36,000 |
|
|
|
Profit & Loss Appropriation |
16,000 |
12,000 |
|
1,29,600 |
1,15,200 |
|
1,29,600 |
1,15,200 |
Capital Ratio |
= |
Ramesh |
: |
Suresh |
|
|
80,000 |
: |
60,000 |
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|
4 |
: |
3 |
APPEARS IN
संबंधित प्रश्न
The partnership agreement between Maneesh and Girish provides that :
- Profits will be shared equally;
- Maneesh will be allowed a salary of Rs 400 p.m;
- Girish who manages the sales department will be allowed a commission equal to 10% of the net profits, after allowing Maneesh’s salary;
- 7% interest will be allowed on partner’s fixed capital;
- 5% interest will be charged on partner’s annual drawings;
- The fixed capitals of Maneesh and Girish are Rs 1,00,000 and Rs 80,000, respectively.
Their annual drawings were Rs 16,000 and 14,000, respectively. The net profit for the year ending March 31, 2019 amounted to Rs 40,000;
Prepare firm’s Profit and Loss Appropriation Account.
Rahul, Rohit and Karan started partnership business on April 1, 2019 with capitals of Rs 20,00,000, Rs 18,00,000 and Rs 16,00,000, respectively. The profit for the year ended March 2020 amounted to Rs 1,35,000 and the partner’s drawings had been Rahul Rs 50,000, Rohit Rs 50,000 and Karan Rs 40,000. The profits are distributed among partner’s in the ratio of 3:2:1. Calculate the interest on capital @ 5% p.a.
Menon and Thomas are partners in a firm. They share profits equally. Their monthly drawings are Rs 2,000 each. Interest on drawings is to be charged @ 10% p.a. Calculate interest on Menon’s drawings for the year 2006, assuming that money is withdrawn:
- at the beginning of every month,
- at the middle of every month, and
- at the end of every month.
Amit and Bhola are partners in a firm. They share profits in the ratio of 3:2. As per their partnership agreement, interest on drawings is to be charged @ 10% p.a. Their drawings during 2019 were Rs 24,000 and Rs 16,000, respectively. Calculate interest on drawings based on the assumption that the amounts were withdrawn evenly, throughout the year.
Raj and Neeraj are partners in a firm. Their capitals as on April 01, 2019 were Rs 2,50,000 and Rs 1,50,000, respectively. They share profits equally. On July 01, 2019, they decided that their capitals should be Rs 1,00,000 each. The necessary adjustment in the capitals were made by introducing or withdrawing cash by the partners’. Interest on capital is allowed @ 8% p.a. Compute interest on capital for both the partners for the year ending on March 31, 2020.
Rakesh and Roshan are partners, sharing profits in the ratio of 3:2 with capitals of Rs 40,000 and Rs 30,000, respectively.
They withdrew from the firm the following amounts, for their personal use:
Rakesh |
Month |
Rs. |
|
May 31, 2019 |
600 |
|
June 30, 2019 |
500 |
|
August 31, 2019 |
1,000 |
|
November 1, 2019 |
400 |
|
December 31, 2019 |
1,500 |
|
January 31, 2020 |
300 |
|
March 01, 2020 |
700 |
Rohan |
At the beginning of each month |
400 |
Interest is to be charged @ 6% p.a. Calculate interest on drawings, assuming that book of account are closed on March 31, 2020, every year.
Illustrate how interest on drawings will be calculated under various situations.
How will you deal with a change in the profit sharing ratio among existing partners?Take imaginary figures to illustrate your answer?
Ram, Raj and George are partners sharing profits in the ratio 5 : 3 : 2. According to the partnership agreement George is to get a minimum amount of Rs 10,000 as his share of profits every year. The net profit for the year 2013 amounted to Rs 40,000. Prepare the Profit and Loss Appropriation Account.
On March 31, 2017, after the close of accounts, the capitals of Mountain, Hill, and Rock stood in the books of the firm at Rs 4,00,000, Rs 3,00,000, and Rs 2,00,000, respectively. Subsequently, it was discovered that the interest on capital @10% p.a. had been omitted. The profit for the year amounted to Rs 1,50,000 and the partner’s drawings had been Mountain: Rs 20,000, Hill Rs 15,000, and Rock Rs 10,000. Calculate interest on capital.
Rishi is a partner in a firm. He withdrew the following amounts during the year ended March 31, 2018.
May 01, 2017 | Rs 12,000 |
July 31, 2017 | Rs 6,000 |
September 30, 2017 | Rs 9,000 |
November 30, 2017 | Rs 12,000 |
January 01, 2018 | Rs 8,000 |
March 31, 2018 | Rs 7,000 |
Interest on drawings is charged @ 9% p.a. Calculate interest on drawings.
Raj and Neeraj are partners in a firm. Their capitals as on April 01, 2017 were Rs 2,50,000 and Rs 1,50,000, respectively. They share profits equally. On July 01, 2017, they decided that their capitals should be Rs 1,00,000 each. The necessary adjustment in the capitals were made by introducing or withdrawing cash by the partners’. Interest on capital is allowed @ 8% p.a. Compute interest on capital for both the partners for the year ending on March 31, 2018.
Amit and Bhola are partners in a firm. They share profits in the ratio of 3:2. As per their partnership agreement, interest on drawings is to be charged @ 10% p.a. Their drawings during 2017 were Rs 24,000 and Rs 16,000, respectively. Calculate interest on drawings based on the assumption that the amounts were withdrawn evenly, throughout the year.
Menon and Thomas are partners in a firm. They share profits equally. Their monthly drawings are Rs 2,000 each. Interest on drawings is to be charged @ 10% p.a. Calculate interest on Menon’s drawings for the year 2006, assuming that money is withdrawn: (i) in the beginning of every month, (ii) in the middle of every month, and (iii) at the end of every month.
Pinki, Deepati and Kaku are partner’s sharing profits in the ratio of 5:4:1. Kaku is given a guarantee that his share of profits in any given year would not be less than Rs 5,000. Deficiency, if any, would be borne by Pinki and Deepti equally. Profits for the year amounted to Rs 40,000. Record necessary journal entries in the books of the firm showing the distribution of profit.
Chhavi and Neha were partners in firm sharing profits and losses equally. Chhavi withdrew a fixed amount at the beginning of each quarter. Interest on drawings is charged @ 6% p.a. At the end of the year, interest on Chhavi's drawings amounted to ₹ 900. Pass necessary journal entry for charging interest on drawings.
E, F and G are partners sharing profits in the ratio of 3:3:2. According to the partnership agreement, G is to get a minimum amount of ₹80,000 as his share of profits every year and any deficiency on this account is to be personally borne by E. The net profit for the year ended 31st March 2021 amounted to ₹3,12,000. Calculate the amount of deficiency to be borne by E?
In case the deed provides for payment of interest on capital but does not specify the rate, the interest will be paid at which rate per annum?
Pick the odd one out:
Read the following information and answer the given question:
Krishika alumni of IIM Ahemdabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ₹ 31,25,000. This profit was arrived after taking into consideration the following items:
S. No. | Particulars | Amount (₹) |
1. | Gain on sale of fixed tangible assets | 12,50,000 |
2. | Goodwill written off | 7,80,000 |
3. | Transfer to General Reserve | 8,75,000 |
4. | Provision for taxation | 4,37,500 |
Additional information:
Particulars | 31.3.2020 (₹) | 31.3.2019 (₹) |
Prepaid Expenses | 7,50,000 | 5,00,000 |
Inventory | 10,50,000 | 8,20,000 |
Trade Payable | 4,50,000 | 3,50,000 |
Trade Receivables | 6,20,000 | 5,90,000 |
Cash flow from operating activities will be ₹ ______.