Question

Richa and Anmol are partners sharing profits in the ratio of 3 : 2 with capitals of ₹ 2,50,000 and ₹ 1,50,000 respectively. Interest on capital is agreed @6% p.a. Anmol is to be allowed an annual salary of ₹ 12,500. During the year ended 31^st March 2023, the profits of the year prior to calculation of interest on capital but after charging Anmol’s salary amounted to ₹ 62,000. A provision of 5% of this profit is to be made in respect of manager’s commission.

Following is their Profit & Loss Appropriation Account:

Particulars	(₹)	Particulars	(₹)
To Interest on Capital		By Profit & loss account (After manager’s commission)	__(2)__
Richa	______
Anmol	______
To Anmol’s Salary a/c	12,500
To Profit transferred to: Richa’s Capital A/C (1)	__(1)__
Anmol’s Capital A/c	______
	______		______

The amount to be reflected in blank (1) will be:

विकल्प

• ₹ 37,200

• ₹ 44,700

• ₹ 22,800 

• ₹ 20,940

Answer 1

₹ 20,940

Explanation:

Dr.	Profit and Loss Appropriation Account			Cr.
Particulars	Amt. (₹)	Amt. (₹)	Particulars	Amt. (₹)
To Interest on Capital		24,000	By Profit & loss account (After manager’s commission)	71,400
Richa	15,000
Anmol	9,000
To Anmol’s Salary a/c		12,500
To Profit transferred to:		34,900
Richa’s Capital A/C	20,940
Anmol’s Capital A/c	13,960
		71,400		71,400