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Question
Amann, Babita and Suresh are partners in a firm. Their profit sharing ratio is 2:2:1. Suresh is guaranteed a minimum amount of Rs 10,000 as share of profit, every year. Any deficiency on that account shall be met by Babita. The profits for two years ending March 31, 2019 and March 31, 2017 were Rs 40,000 and Rs 60,000, respectively. Prepare the Profit and Loss Appropriation Account for the two years.
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Solution
Profit and Loss Appropriation Account for the year ended 31st March 2016
Dr Cr.
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
|
Profit transferred to |
|
Profit and Loss |
40,000 |
||
|
Amann’s Capital 16,000 |
16,000 |
|
|
||
|
Babita’s Capital (16,000 – 2,000) |
14,000 |
|
|
||
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Suresh’s Capital (8,000 + 2,000) |
10,000 |
|
|
||
|
|
40,000 |
|
40,000 |
||
Profit and Loss Appropriation Account for the year ended 31st March 2017
Dr. Cr.
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
|
Profit transferred to |
|
Profit and Loss |
60,000 |
||
|
Amann’s Capital |
24,000 |
|
|
||
|
Babita’s Capital |
24,000 |
|
|
||
|
Suresh’s Capital |
12,000 |
|
|
||
|
|
60,000 |
|
60,000 |
||
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|
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|
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?
