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Question
Ashok, Brijesh and Cheena are partners sharing profits and losses in the ratio of 2 : 2 : 1. Ashok and Brijesh have guaranteed that Cheena share in any year shall be less than Rs 20,000. The net profit for the year ended March 31, 2017 amounted to Rs 70,000. Prepare Profit and Loss Appropriation Account.
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Solution
Profit and Loss Appropriation Account as on
March 31, 2017
Dr. Cr.
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||||||||
|
Profit transferred to |
|
Profit and Loss |
70,000 |
|||||||||
|
Ashok’s Capital |
28,000 |
25,000 |
||||||||||
|
Less: Cheena’s share of deficiency {6,000 × (1/2)} |
(3,000) |
|||||||||||
|
Brijesh’s Capital |
28,000 |
25,000 |
||||||||||
|
Less: Cheena’s share of deficiency {6,000 × (1/2)} |
(3,000) |
|||||||||||
|
Cheena’s Capital |
14,000 |
20,000 |
||||||||||
|
Add: Deficiency received from |
|
|||||||||||
|
Ashok |
3,000 |
|||||||||||
|
Brijesh |
3,000 |
|||||||||||
|
70,000 |
70,000 |
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|
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Sukesh (Rs) |
Verma* (Rs) |
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|
Liabilities |
Amount (Rs.) |
Amount (Rs.) |
Assets |
Amount (Rs.) |
Amount (Rs.) |
|
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|
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|
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What will the amount of interest on drawings of the partners?
