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प्रश्न
Rakhi and Shikha are partners in a firm, with capitals of Rs 2,00,000 and Rs 3,00,000 respectively. The profit of the firm, for the year ended 2016-17 is Rs 23,200. As per the Partnership agreement, they share the profit in their capital ratio, after allowing a salary of Rs 5,000 per month to Shikha and interest on Partner’s capital at the rate of 10% p.a. During the year Rakhi withdrew Rs 7,000 and Shikha Rs 10,000 for their personal use. You are required to prepare Profit and Loss Appropriation Account and Partner’s Capital Accounts.
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उत्तर
If interest on capital and Partners’ salaries will be provided even if firm involves in loss.
Profit and Loss Appropriation Account
Dr. Cr.
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||||||
|
Partner’s Salaries |
|
Profit and Loss |
23,200 |
||||||
|
Shikha |
60,000 |
Loss transferred to |
|
||||||
|
Interest on Capital |
|
Rakhi Capital |
34,720 |
86,800 |
|||||
|
Rakhi |
20,000 |
|
Shikha’s Capital |
52,080 |
|||||
| Shikha | 30,000 |
50,000 |
|
||||||
|
|
1,10,000 |
|
1,10,000 |
||||||
Partners’ Capital Account
Dr Cr.
|
Particulars |
Rakhi |
Shikha |
Particulars |
Rakhi |
Shikha |
|
Drawings |
7,000 |
10,000 |
Balance b/d |
2,00,000 |
3,00,000 |
|
Profit & Loss Appropriation |
34,720 |
52,080 |
Partner’s Salaries |
|
60,000 |
|
Balance c/d |
1,78,280 |
3,27,920 |
Interest on Capital |
20,000 |
30,000 |
|
|
2,20,000 |
3,90,000 |
|
2,20,000 |
3,90,000 |
If interest on capital and salaries will be provided out of profit
Profit and Loss Appropriation Account
Dr. Cr.
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||||
|
Partner’s Salaries |
|
Profit and Loss |
23,200 |
||||
|
Shikha `{23,200 × (6/11)}` |
12,655 |
|
|||||
|
Interest on Capital |
|
|
|||||
|
Rakhi `{23,200 × (2/11)}` |
4,218 |
|
|||||
|
Shikha `{23,200 × (3/11)}` |
6,327 |
|
|||||
|
|
23,200 |
|
23,200 |
||||
If profit is less than the sum of distributable items, distribution shall be in proportion of items for distribution.
|
Partners Salaries |
Ratio |
|
|
|
Shikhar (Rs 60,000) |
6 |
23,200 × (6/11) |
12,655 |
|
Interest on Capital |
|
|
|
|
Rakhi (Rs 20,000) |
2 |
23,200 × (2/11) |
4,218 |
|
Shikhar (Rs 30,000) |
3 |
23,200 × (3/11) |
6,327 |
|
|
11 |
|
23,200 |
Partners’ Capital Account
Dr. Cr.
|
Particulars |
Rakhi |
Shikha |
Particulars |
Rakhi |
Shikha |
|
Drawings |
7,000 |
10,000 |
Balance b/d |
2,00,000 |
3,00,000 |
|
|
|
|
Partner’s Salaries |
|
12,655 |
|
Balance c/d |
1,97,218 |
3,08,972 |
Interest on Capital |
4,218 |
6,327 |
|
|
2,04,218 |
3,18,972 |
|
2,04,218 |
3,18,972 |
APPEARS IN
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Consider the following statements
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Statement 2: Specified provisions are required to be mentioned in the partnership deed to charge interest on drawings.
How you will calculate the average period and the interest on drawings when the amount is withdrawn in the middle of each month?
In a case where a partner may be guaranteed a minimum amount by way of his share in profits. If in any year, the share of profits is less than the guaranteed amount, the deficiency is made good by the guaranteeing partners' in which ratio?
What would be the journal entry for the Share of Profit or Loss after appropriation?
Pick the odd one out:
Which of the following items is not dealt through Profit and Loss Appropriation Account?
Pick the odd one out:
Where is the Interest in drawings recorded in the Current Account?
Identify the journal entry for transferring salaries paid to the Active Partner A to the Profit and loss Appropriation A/c.
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 ₹ ______.
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 ₹ ______.
What will be the interest on drawing @ 12.5% p.a. for Abhishek if he withdraws ₹ 5,000 once in month?
What will be the interest on capital for C @ 6% p.a for A, B and C who have invested ₹ 15,000, ₹ 25,000 and ₹ 30,000 and share profits in the ratio 1 : 2 : 3?
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 31st 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:
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 31st 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 (2) will be:
