A , B , C were partners in a firm having capitals of rs. 50000, rs. 50000 and rs.100000. Thier current account balances were A : Rs.10000 , B : Rs.5000 and C : Rs.2000 (Dr.) . According to the partnership deed the partners were entitled to an interest on capital @ 10% p.a. C being the working partner was also entitled to a salary of Rs.12000p.a. The profits were to be divided as :
(a). The first Rs.20000 in proportion to their capitals.
(b). Next Rs. 30000 in the ratio of 5:3:2
(c). Remaining profits to be shared equally.
The firm made a profit of Rs.172000 before charging any of the above items . Prepare the profit and loss appropriation account and pass the necessary journal entries for the appropriation of profits.
what is difference between drawings and withdrawn capital?
Suresh and Ramesh were partners in a firm sharing profits in the ratio of 3:2. Their fixed capitals were Suresh-Rs.9,00,000 and Ramesh-Rs.6,00,000. The partnership deed provided for the following:
(i) Interest on capital @ 5% p.a.
(ii) Rs.60,000 p.a. salary to Suresh and salary of Rs.2,000 per month to Ramesh.
The profit earned by the firm for the year ended 31.3.2007 was Rs.2,34,000. The profits were divided equally without providing for the above. Pass adjustment entry.
A , B , C were partners in a firm having capitals of rs. 50000, rs. 50000 and rs.100000. Thier current account balances were A : Rs.10000 , B : Rs.5000 and C : Rs.2000 (Dr.) . According to the partnership deed the partners were entitled to an interest on capital @ 10% p.a. C being the working partner was also entitled to a salary of Rs.12000p.a. The profits were to be divided as :
(a). The first Rs.20000 in proportion to their capitals.
(b). Next Rs. 30000 in the ratio of 5:3:2
(c). Remaining profits to be shared equally.
The firm made a profit of Rs.172000 before charging any of the above items . Prepare the profit and loss appropriation account and pass the necessary journal entries for the appropriation of profits.
what is difference between drawings and withdrawn capital?
Suresh and Ramesh were partners in a firm sharing profits in the ratio of 3:2. Their fixed capitals were Suresh-Rs.9,00,000 and Ramesh-Rs.6,00,000. The partnership deed provided for the following:
(i) Interest on capital @ 5% p.a.
(ii) Rs.60,000 p.a. salary to Suresh and salary of Rs.2,000 per month to Ramesh.
The profit earned by the firm for the year ended 31.3.2007 was Rs.2,34,000. The profits were divided equally without providing for the above. Pass adjustment entry.