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Simmi and Sonu Are Partners in a Firm, Sharing Profits and Losses in the Ratio of 3:1. - Accountancy

Ledger

Simmi and Sonu are partners in a firm, sharing profits and losses in the ratio of 3:1. The profit and loss account of the firm for the year ending March 31, 2017 shows a net profit of Rs 1,50,000. Prepare the Profit and Loss Appropriation Account by taking into consideration the following information:
(i)    Partners capital on April 1, 2016;

        Simmi, Rs 30,000; Sonu, Rs 60,000;

(ii)   Current accounts balances on April 1, 2016;

        Simmi, Rs 30,000 (cr.); Sonu, Rs 15,000 (cr.);

(iii)  Partners drawings during the year amounted to

        Simmi, Rs 20,000; Sonu, Rs 15,000;

(iv)  Interest on capital was allowed @ 5% p.a.;

(v)   Interest on drawing was to be charged @ 6% p.a. at an average of six months;

(vi)  Partners’ salaries : Simmi Rs 12,000 and Sonu Rs 9,000. Also show the partners’ current accounts.

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Solution

Profit and Loss Appropriation Account

Dr.                                                                                 Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Interest on Capital

 

Profit and Loss Account

1,50,000

Simmi

1,500

 

4,500

Interest on Drawings

 

Sonu

3,000

Simmi

600

 

1,050

Partners’ Salaries

 

Sonu

450

Simmi

12,000

 

21,000

 

 

 

 

 

 

 

 

 

 

 

Sonu

9,000

 

Profit transferred to

 

 

Simmi’s Current

94,162

 

1,25,550

 

Sonu’s Current

31,388

 

  

1,51,050

 

1,51,050

Partners’ Capital Account

Dr.                                                                                 Cr.

Particulars

Simmi

Sonu

Particulars

Simmi

Sonu

 

 

 

Balance b/d

30,000

60,000

Balance c/d

30,000

60,000

 

 

 

 

30,000

60,000

 

30,000

60,000

Partners’ Current Account

Dr.                                                                                Cr.

Particulars

Simmi

Sonu

Particulars

Simmi

Sonu

Drawings

20,000

15,000

Balance b/d

30,000

15,000

Interest on Drawings

600

450

Interest on Capital

1,500

3,000

Balance c/d

1,17,662

43,388

Partners’ Salaries

12,000

9,000

     

Profit and Loss Appropriation

94,162

31,388

 

1,37,662

58,388

 

1,37,662

58,388

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APPEARS IN

NCERT Class 12 Accountancy - Not-for-profit Organisation and Partnership Accounts
Chapter 2 Accounting for Partnership : Basic Concepts
Numerical Questions | Q 10 | Page 100
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