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Question
Ram, Raj and George are partners sharing profits in the ratio 5 : 3 : 2. According to the partnership agreement George is to get a minimum amount of Rs 10,000 as his share of profits every year. The net profit for the year 2013 amounted to Rs 40,000. Prepare the Profit and Loss Appropriation Account.
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Solution
Profit and Loss Appropriation Account
Dr. Cr.
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Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
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Profit transferred to |
|
Profit and Loss |
40,000 |
||
|
Ram’s Capital (20,000 – 1,250) |
18,750 |
|
|
||
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Raj’s Capital (12,000 – 750) |
11,250 |
|
|
||
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George’s Capital (8,000 + 1,250 + 750) |
10,000 |
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|
||
|
|
40,000 |
|
40,000 |
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|
|
Sukesh (Rs) |
Verma* (Rs) |
|
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|
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|
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|
Rakesh |
Month |
Rs. |
|
|
May 31, 2019 |
600 |
|
|
June 30, 2019 |
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|
|
August 31, 2019 |
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|
|
November 1, 2019 |
400 |
|
|
December 31, 2019 |
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|
|
January 31, 2020 |
300 |
|
|
March 01, 2020 |
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|
Rohan |
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|
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|
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|
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|
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|
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|
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|
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What will the amount of interest on drawings of the partners?
|
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:
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What will the amount of interest on drawings of the partners?
