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Question
X, Y and Z are in Partnership, sharing profits and losses in the ratio of 3 : 2 : 1, respectively. Z’s share in the profit is guaranteed by X and Y to be a minimum of Rs 8,000. The net profit for the year ended March 31, 2017 was Rs 30,000. Prepare Profit and Loss Appropriation Account, indicating the amount finally due to each partner.
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Solution
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Profit and Loss Appropriation Account as on March 31, 2017 |
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Dr. |
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Cr. |
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Particulars |
Amount Rs |
Particulars |
Amount Rs |
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Profit transferred to |
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Profit and Loss |
30,000 |
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X’s Capital |
15,000 |
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Less: Z’s Deficiency {3,000 × (3/5)} |
(1,800) |
13,200 |
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Y’s Capital |
10,000 |
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Less: Z’s Deficiency {3,000 × (2/5)} |
(1,200) |
8,800 |
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Z’s Capital |
5,000 |
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Add: Share of Deficiency born by |
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Radha |
1,800 |
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Mary |
1,200 |
8,000 |
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30,000 |
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30,000 |
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Rakesh |
Month |
Rs. |
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|
Rohan |
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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?
