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Sukesh and Vanita Were Partners in a Firm. Their Partnership Agreement Provides That: - Accountancy

Ledger

Sukesh and Vanita were partners in a firm. Their partnership agreement provides that:

 

(i)    Profits would be shared by Sukesh and Vanita in the ratio of 3:2;

(ii)   5% interest is to be allowed on capital;

(iii)  Vanita should be paid a monthly salary of Rs 600.

The following balances are extracted from the books of the firm, on March 31, 2017.

 

Sukesh (Rs)

Verma* (Rs)

Capital Accounts

40,000

40,000

Current Accounts

(Cr.)   7,200

(Cr.)   2,800

Drawings

10,850

8,150

Net profit for the year, before charging interest on capital and after charging partner’s salary was Rs 9,500. Prepare the Profit and Loss Appropriation Account and the Partner’s 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

9,500

Sukesh

2,000

 

4,000

 

 

Vanita

2,000

 

Profit transferred to

 

 

Sukesh’s Current {5,500 × (3/5)}

3,300

 

Vanita’s Current {28,000 × (2/5)}

2,200

 

 

9,500

 

9,500

Partner’s Capital Account

Dr.                                                                                 Cr.

Particulars

Sukesh

Vanita

Particulars

Sukesh

Vanita

 

 

 

Balance b/d

40,000

40,000

Balance c/d

40,000

40,000

 

 

 

 

40,000

40,000

 

40,000

40,000

Partner’s Current Account

Dr.                                                                                  Cr.

Particulars

Sukesh

Vanita

Particulars

Sukesh

Vanita

Drawings

10,850

8,150

Balance b/d

7,200

2,800

Balance c/d

1,650

6,050

Partner’s Salaries

 

7,200

 

 

 

Profit and Loss Appropriation

3,300

2,200

 

   

Interest on capital

2,000

2,000

 

12,500

14,200

 

12,500

14,200

  Is there an error in this question or solution?
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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 12 | Page 101
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