Advertisements
Advertisements
प्रश्न
| A and B are partners in a firm sharing profits in the ratio of 1 : 2. Their capitals on 1st April 2023 were 4,00,000 and ₹ 6,00,000 respectively. As per partnership deed, A is to get a monthly salary of ₹ 15,000 and interest on capitals is to be provided @ 10% p.a. and charged on drawings @ 12% p.a. During the year A withdrew ₹ 30,000 and B withdrew ₹ 50,000. |
The firm incurred a loss of ₹ 60,000 during the year ended 31st March, 2024 before above adjustments. You are required to prepare an account showing the distribution of profit/loss.
Advertisements
उत्तर
|
Profit and Loss Appropriation Account
for the year ended 31st March, 2024 |
||||
| Particulars | Amount (₹) | Particulars | Amount (₹) | Amount (₹) |
| To Net Loss (transferred from P&L A/c) | 60,000 | By Interest on Drawings: | ||
| - A | 1,800 | |||
| - B | 3,000 | 4,800 | ||
| By Net Loss transferred to: | ||||
| A's Capital A/c (1/3) | 18,400 | |||
| B's Capital A/c (2/3) | 36,800 | |||
| Total | 60,000 | Total | 60,000 | |
Working note:
When dates of drawings are not given, interest on drawings is calculated for an average period of 6 months.
Interest on A's Drawings:
`30,000 xx 12% xx 6/12 = 1,800`
Interest on B's Drawings:
`50,000 xx 12% xx 6/12 = 3,000`
Total Interest on Drawings:
`1,800 + 3,000 = 4,800`
The initial book loss of ₹ 60,000 is reduced by the interest on drawings income.
Divisible Loss = Initial Loss − Total Interest on Drawings
Divisible Loss = 60,000 − 4,800 = 55,200
The remaining net loss of ₹ 55,200 is distributed in their profit-sharing ratio of 1 : 2.
A's Share of Loss: `55,200 xx 1/3 = 18,400`
B's Share of Loss: `55,200 xx 2/3 = 36,800`
Notes
Although Profit & Loss Appropriation A/c is not prepared in case of loss, it will be prepared in this question because interest on drawings is to be credited to this account.
