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प्रश्न
Jain, Gupta and Singh were partners in a firm. Their fixed capitals were: Jain Rs 4,00,000 Gupta Rs 6,00,000 and Singh Rs 10,00,000. They were sharing profits in the ratio of their capitals. The firm was engaged in the processing and distribution of flavoured milk. They partnership deed provided for interest on capital at 10% per annum. During the year ended 31st March 2014, the firm earned a profit of Rs 1,47,000.
Showing your working notes clearly, prepare Profit and Loss Appropriation Account of the firm.
उत्तर
| Profit and Loss Appropriation Account For the year ended March 31, 2014 |
|||
| Dr. | Cr. | ||
| Particulars | Rs | Particulars | Rs |
|
To Interest on Capital Jain’s Current A/c 29,400 Gupta’s Current A/c 44,100 Singh’s Current A/c 73,500 |
1,47,500 |
By Profit and Loss A/c
|
1,47,000
|
| 1,47,500 | 1,47,500 | ||
Working Notes
WN1: Calculation of Interest on Capital
On Jain's Capital = `400000 xx 10/100 = 40000`
On Gupta's Capital = `600000 xx 10/100 = 60000`
On Singh's Capital = `1000000 xx 10/100 = 100000`
Total Interest = 40,000 + 60,000 + 1,00,000 = 2,00,000
WN 2: Calculation of Proportionate Interest on Capital
Proportinate Interest = `"Interest to a partner"/"Total Interest of all partners" xx "Available profit"`
Proportionate Interest to Jain = `40000/200000 xx 147000 = 29400`
Proportionate Interest to Gupta = `60000/200000 xx 147000 = 44100`
Proportionate Interest to Singh = `100000/200000 xx 147000 = 73500`
संबंधित प्रश्न
P and Q were partners in a firm sharing profits in the ratio of 5:3. On 1-4-2014 they admitted R as a new partner for 1/8th share in the profits with a guaranteed profit of Rs. 75,000. The new profit sharing ratio between P and Q will remain the same but they agreed to bear any deficiency on account of guarantee to R in the ratio 3:2. The profit of the firm for the year ended 31-3-2015 was Rs. 4,00,000.
Prepare Profit and Loss Appropriation Account of P, Q and R for the year ended 31-3-2015.
Vikas and Vivek were partners in a firm sharing profits in the ratio of 3: 2.
On 1.4.2014 they admitted Vandana as a new partner for 1/8th the share in the profits with a guaranteed profit of Rs.1,50,000. The new profit sharing ratio between Vivek and Vikas will remain the same but they decided to bear any deficiency on account of guarantee to Vandana in the ratio 2: 3. The profit of the firm for the year ended 31.3.2015 was Rs.9, 00,000.
Prepare Profit and Loss Appropriation Account of Vikas, Vivek and Vandana for the year ended 31.3.2015.
Satnam and Qureshi after doing their MBA decided to start a partnership firm to manufacture 151 marked electronic goods for economically weaker section of the society. Satnam also expressed his willingness to admit Juliee as partner without capital who is specially abled but a very creative and intelligent friend of him. Qureshi agreed to this. They formed a partnership on 1st April 2012 on the following terms :
i. Satnam will contribute Rs.4,00,000 and Qureshi will contribute Rs.2,00,000 as capitals.
ii. Satnam, Qureshi and Juliee will share profits in the ratio of 2:2:1.
iii. Interest on capital will be allowed @ 6% p.a. Due to shortage of capital Satnam contributed Rs.50,000 on 30th September, 2012 and Qureshi contributed Rs.20,000 on 1st January, 2013 as additional capitals. The profit of the firm for the year ended 31st March, 2013 was Rs.3,37,800.
a. Identify any two values which the firm wants to communicate to the society.
Prepare Profit & Loss Appropriation Account for the year ending 31st March 2013.
Usha and Uma were partners in a firm sharing profits in the ratio of 3:2. On 1-4-2014 they admitted Urmila as a new partner with 1/5th share in the profits with a guaranteed profit of Rs 30,000. The new profit sharing ratio between Usha and Uma will remain the same but they agreed to bear any deficiency on account of guarantee to Urmila in the ratio of 7:3. The profit of the firm for the year ended 31-3-2015 was Rs 1, 35,000.
Prepare Profit and Loss Appropriation Account of Usha, Uma and Urmila for the year ended 31-3-2015.
Moli, Bhola and Raj were partners in the firm sharing profits and losses in the ratio of 3 : 3: 4. Their partnership deed provided for the following:
1) Interest on capital @ 5% p.a.
2) Interest on drawing @ 12% p.a
3) Interest on partners' loan @ 6% p. a.
4) Moli was allowed an annual salary of Rs 4,000; Bhola was allowed a commission of 10% of net profit as shown by Profit and Loss Account and Raj was guaranteed a profit of Rs 1,50,000 after making all the adjustments as provided in the partnership agreement. Their fixed capitals were Moli: Rs 5,00,000; Bhola : Rs 8,00,000 and Raj : Rs 4,00,000. On 1st April 2016, Bhola extended a loan of Rs 1,00,000 to the firm. The net profit of the firm for the year ended 31st March 2017 before interest on Bhola's loan was Rs 3,06,000.
Prepare Profit and Loss Appropriation Account of Moli, Bhola and Raj for the year ended 31st March 2017 and their Current Accounts assuming that Bhola withdrew Rs 5,000 at the end of each month, Moli withdrew Rs 10,000 at the end of each quarter and Raj withdrew Rs 40,000 at the end of each half year.
On 1-4-2013 Jay and Vijay, entered into the partnership for supplying laboratory equipment to
government schools situated in remote and backward areas. They contributed capitals of `80,000 and Rs 50,000 respectively and agreed to share the profits in the ratio 3: 2. The partnership deed provided that interest on capital shall be allowed at 9% per annum. During the year the firm earned a profit of Rs 7,800. Showing your calculations clearly, prepare Profit and Loss Appropriation Account of Jay and Vijay for the year ended 31-3-2014
On 1.4.2013, Brij and Nandan entered into a partnership to construct toilets in government girls schools in the remote areas of Uttarakhand. They contributed capitals of Rs 10,00,000 and Rs 15,00,000 respectively. Their profit sharing ratio was 2:3 and interest allowed on capital as provided in the Partnership Deed was 12% per annum. During the year ended 31.3.2014, the firm earned a profit of Rs 2,00,000
Prepare Profit and Loss Appropriation Account of Brij and Nandan for the year ended 31.3.2014
Singh and Gupta decided to start a partnership firm to manufacture low-cost jute bags as plastic bags were creating many environmental problems. They contributed capitals of Rs 1,00,000 and Rs 50,000 on 1st April 2012 for this. Singh expressed his willingness to admit Shakti as a partner without capital, who is specially abled but a very creative and intelligent friend of his. Gupta agreed to this. The terms of the partnership were as follows :
1) Singh, Gupta and Shakti will share profits in the ratio of 2:2:1.
2) Interest on capital will be provided @ 6% p.a.
Due to the shortage of capital, Singh contributed Rs 25,000 on 30th September 2012 and Gupta contributed Rs 10,000 on 1st January 2013 as additional capital. The profit of the firm for the year ended 31st March 2013 was Rs 1,68,900.
a. Identify any two values which the firm wants to communicate to the society.
b. Prepare Profit and Loss Appropriation Account for the year ending 31st March 2013.
Arjun, Bhim and Nakul are partners sharing profits & losses in the ratio of 14 : 5 : 6 respectively.
Bhim retires and surrenders his 5/25th share in favour of Arjun. The goodwill of the firm is valued at 2 years purchase of super profits based on average profits of last 3 years. The profits for the last 3 years are Rs 50,000, Rs 55,000 & Rs 60,000 respectively. The normal profits for the similar firm are Rs 30,000. Goodwill already appears in the books of the firm at Rs 75,000.
The profit for the first year after Bhim's retirement was Rs 1,00,000. Give the necessary Journal
Entries to adjust Goodwill and distribute profits showing your workings.
A Partnership firm earned net profits during the last three years as follows:
|
Years |
Net Profit Rs |
|
2007-2008 |
1,90,000 |
|
2008-2009 |
2,20,000 |
|
2009-2010 |
2,50,000 |
The capital employed in the firm throughout the above mentioned period has been Rs 4,00,000. Having regard to the risk involved,
15% is considered to be a fair return on the capital. The remuneration of all the partners during this period is estimated to be Rs 1,00,000 per annum.
Calculate the value of goodwill on the basis of (i) two year’s purchased of super profits earned on a average basis during the above mentioned three years and (ii) by capitalization method.
A, B and C are partners. A‘s capital is ₹ 3,00,000 and B‘s capital is ₹ 1,00,000. C has not invested any amount as capital but he alone manages the whole business. C wants 30,000 p.a. as salary, though the deed is silent. Firm earned a profit of ₹ 1,50,000. How much will each partner receives as an appropriation of profits?
Puneet and Raju are partners in a clay toys making firm. Their capitals were ₹ 5,00,000 and ₹ 10,00,000 respectively. The firm allowed Puneet to get a commission of 10% on the net profit before charging any commission and Raju to get a commission of 10% on the net profit after charging all commissions. Following is the Profit and Loss Appropriation Account for the year ended 31st March 2022.
| Dr. | Profit and Loss Appropriation Account for the year ended 31st March 2022 |
Cr. | |
| Particulars | Amount (₹) |
Particulars | Amount (₹) |
| To Puneet’s Capital A/c (Commission) (------ x 10/100) |
44,000 | By Profit and Loss A/c | ______ |
| To Raju’s Capital A/c (Commission) |
______ | ||
| To Profit share transferred to:- | |||
| Puneet’s Capital A/c | ______ | ||
| Raju’s Capital A/c | ______ | ||
| ______ | ______ | ||
Raju’s commission will be ______.
Amay, Anmol, and Rohan entered into a partnership on 1st July 2021 to share profits and losses in the ratio of 3:2:1. Amay guaranteed that Rohan’s share of profit after charging interest on capital @ 6% p.a would not be less than ₹ 36,000 p.a. Their fixed capital balances are: ₹ 2,00,000, ₹ 1,00,000 and ₹ 1,00,000 respectively. Profit for the year ended 31st March, 2022 was ₹1,38,000. Prepare Profit and Loss Appropriation A/c.
Cheese and Slice are equal partners. Their capitals as on April 01, 2022 were Rs. 50,000 and Rs. 1,00,000 respectively. After the accounts for the financial year ending March 31, 2023 have been prepared, it is observed that interest on capital @ 6% per annum and salary to Cheese @ ₹ 5,000 per annum, as provided in the partnership deed has notbeen credited to the partners’ capital accounts before distribution of profits.
You are required to give necessary rectifying entries using P & L adjustment account.
Ruma and Neha started business on 1st April, 2021, with fixed capitals of ₹ 4,00,000 and ₹ 3,50,000 respectively. On 1st October, 2021, they decided that their total capital (fixed) should be ₹ 8,00,000, in their profit-sharing ratio of 3 : 2.
Accordingly, they introduced extra capital or withdrew excess capital.
Their partnership deed provided for the following:
- Interest on capital to be allowed @ 10% per annum.
- A monthly salary of ₹ 1,000 each to be allowed to both Ruma and Neha.
- Interest on drawings to be charged @ 18% per annum.
Ruma had withdrawn ₹ 12,000, during the year. As per the deed, the interest on her drawings amounting to ₹ 1,080 to be charged from her.
During the year ending 31st March, 2022, the firm earned a net profit of ₹ 2,04,000 before charging manager's commission of ₹ 20,400 and interest on bank loan of ₹ 4,000.
You are required to:
- Give the journal entry to close Ruma's Drawings Account.
- Prepare Profit and Loss Appropriation Account for the year ending 31st March, 2022.
Deb, Riza and Ved entered into a partnership on 1st July, 2023, without any agreement as to profit sharing, except that Deb guaranteed that Ved’s share of profit, after considering interest into account, would not be less than ₹ 8,500 per annum. The initial capital provided by the partners was as follows:
| Deb | ₹ 60,000 |
| Riza | ₹ 20,000 |
| Ved | 12,000 (increased on the following 1st January, 2024, to ₹ 16,000) |
In addition to the above capital, Deb and Riza gave temporary loans to the partnership firm as follows:
- Deb advanced ₹ 18,000 on 1st October, 2023, and was repaid on 1st April following.
- Riza advanced ₹ 40,000 on 1st September, 2023, and was repaid along with interest, on 1st December, 2023.
The profit of the firm for the year ended 31st March, 2024, before providing for any interest was ₹ 21,000.
You are required to prepare for the year 2023-24:
- Profit and Loss Appropriation Account.
- Riza’s Loan Account.
- Ved’s Capital Account.
