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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
Dr. Cr.
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||||
Interest on Capital |
|
Profit and Loss |
1,00,300 |
||||
Ramesh |
9,600 |
16,800 |
Interest on Drawings |
|
|||
Suresh |
7,200 |
Ramesh |
2,000 |
4,500 |
|||
Partners’ Salaries |
|
Suresh |
2,500 |
||||
Ramesh |
24,000 |
60,000 |
|
|
|||
Suresh |
36,000 |
|
|||||
Profit Transferred to |
|
|
|||||
Ramesh’s Capital {28,000 × (4/7)} |
16,000 |
|
|||||
Suresh’s Capital {28,000 × (3/7)} |
12,000 |
|
|||||
1,04,800 |
1,04,800 |
Partners’ Capital Account
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
= 80000 : 60000
= 4 : 3
APPEARS IN
संबंधित प्रश्न
Mannu and Shristhi are partners in a firm sharing profit in the ratio of 3 : 2. Following is the balance sheet of the firm as on March 31, 2017.
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
||||
Mannu’s Capital |
30,000 |
40,000 |
Drawings : |
|
|||
Shristhi’s Capital |
10,000 |
Mannu |
4,000 |
6,000 |
|||
Shristhi |
2,000 |
||||||
Other Assets |
34,000 |
||||||
40,000 |
40,000 |
Profit for the year ended March 31, 2017 was Rs 5,000 which was divided in the agreed ratio, but interest @ 5% p.a. on capital and @ 6% p.a. on drawings was inadvertently enquired. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry.
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.
The capital accounts of Moli and Golu showed balances of Rs 40,000 and Rs 20,000 as on April 01, 2019. They shared profits in the ratio of 3:2. They allowed interest on capital @ 10% p.a. and interest on drawings, @ 12 p.a. Golu advanced a loan of Rs 10,000 to the firm on August 01, 2019. During the year, Moli withdrew Rs 1,000 per month at the beginning of every month whereas Golu withdrew Rs 1,000 per month at the end of every month. Profit for the year, before the above mentioned adjustments was Rs 20,950. Calculate interest on drawings show distribution of profits and prepare partner’s capital accounts.
Illustrate how interest on drawings will be calculated under various situations.
Aakriti and Bindu entered into partnership for making garment on April 01, 2016 without any Partnership agreement. They introduced Capitals of Rs 5,00,000 and Rs 3,00,000 respectively on October 01, 2016. Aakriti Advanced. Rs 20,000 by way of loan to the firm without any agreement as to interest. Profit and Loss account for the year ended March 2017 showed profit of Rs 43,000. Partners could not agree upon the question of interest and the basis of division of profit. You are required to divide the profits between them giving reason for your solution.
Lokesh and Azad are partners sharing profits in the ratio 3:2, with capitals of Rs 50,000 and Rs 30,000, respectively. Interest on capital is agreed to be paid @ 6% p.a. Azad is allowed a salary of Rs 2,500 p.a. During 2016, the profits prior to the calculation of interest on capital but after charging Azad’s salary amounted to Rs 12,500. A provision of 5% of profits is to be made in respect of manager’s commission. Prepare accounts showing the allocation of profits and partner’s capital accounts.
Simmi and Sonu are partners in a firm, sharing profits and losses in the ratio of 3:1. The profit and loss account of the firm for the year ending March 31, 2017 shows a net profit of Rs 1,50,000. Prepare the Profit and Loss Appropriation Account by taking into consideration the following information:
(i) Partners capital on April 1, 2016;
Simmi, Rs 30,000; Sonu, Rs 60,000;
(ii) Current accounts balances on April 1, 2016;
Simmi, Rs 30,000 (cr.); Sonu, Rs 15,000 (cr.);
(iii) Partners drawings during the year amounted toSimmi, Rs 20,000; Sonu, Rs 15,000;
(iv) Interest on capital was allowed @ 5% p.a.;
(v) Interest on drawing was to be charged @ 6% p.a. at an
average of six months;
(vi) Partners’ salaries : Simmi Rs 12,000 and Sonu Rs 9,000. Also show the partners’ current accounts.
Rahul, Rohit and Karan started partnership business on April 1, 2016 with capitals of Rs 20,00,000, Rs 18,00,000 and Rs 16,00,000, respectively. The profit for the year ended March 2017 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.
Bharam is a partner in a firm. He withdraws Rs 3,000 at the starting of each month for 12 months. The books of the firm closes on March 31 every year. Calculate interest on drawings if the rate of interest is 10% p.a.
X, Y and Z are in Partnership, sharing profits and losses in the ratio of 3 : 2 : 1, respectively. Z’s share in the profit is guaranteed by X and Y to be a minimum of Rs 8,000. The net profit for the year ended March 31, 2017 was Rs 30,000. Prepare Profit and Loss Appropriation Account, indicating the amount finally due to each partner.
Arun, Boby and Chintu are partners in a firm sharing profit in the ratio or 2:2:1. According to the terms of the partnership agreement, Chintu has to get a minimum of Rs 60,000, irrespective of the profits of the firm. Any Deficiency to Chintu on Account of such guarantee shall be borne by Arun. Prepare the profit and loss appropriation account showing distribution of profits among partners in case the profits for year 2015 are: (i) Rs 2,50,000; (ii) 3,60,000.
Raka, Seema, and Mahesh were partners sharing profits and losses in the ratio of 5: 3: 2. With effect from 1st April, 2019, they mutually agreed to share profits and losses in the ratio of 2: 2: 1.
On that date, there was a workmen's compensation fund of ₹ 90,000 in the books of the firm. It was agreed that:
(i) Goodwill of the firm be valued at ₹ 70,000.
(ii) Claim for workmen's compensation amounted to ₹ 40,000.
(iii) Profit on revaluation of assets and re-assessment of liabilities amounted to ₹ 40,000.
Pass necessary journal entries for the above transactions in the books of the firm.
If the interest on drawings is omitted to be recorded, what will be the journal entry?
Guarantee of profit to a partner is given by:
When is the Profit and Loss Appropriation Account prepared?
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 |
Net Profit before Tax will be ₹ ______.
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 |
Operating profit before working capital changes will be ₹ ______.
Rudra, Dev and Shiv were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Their fixed capitals were ₹ 6,00,000, ₹ 4,00,000 and ₹ 2,00,000 respectively. Besides his capital Shiv had given a loan of ₹ 75,000 to the firm. Their partnership deed provided for the following:
During the year Rudra withdrew ₹ 50,000 at the end of each quarter; Dev withdrew ₹ 50,000 in the beginning of each half year and Shiv withdrew ₹ 70,000 at the end of each half year. The profit of the firm for the year ended 31-3-2022 before allowing interest on Shiv's loan was ₹ 7,06,750. |
What will the amount of interest on drawings of the partners?