lata and mamta are partners with capitals of Rs 300000 and Rs 200000 respectively sharing profits as lata 70% and mamta 30% during the year ended 31 march 2005 they earned a profit of Rs 226440 before allowing interest on partner's loan. the terms of partnership are as follows:
1. interest on capital is to be allowed @ 7% p.a
2. lata to get a salary of Rs 2500 per month.
3. interest on mamta's loan account of Rs 80000 for the whole yr.
4. interest on drawings of partner's at 8% per annum . drawings being lata Rs 36000 and mamta Rs 48000.
5. 1/10 of the distributable profit should be transferred to general reserve. prepare the profit and loss appropriation account.
rply me the solution to this ques. in detail.
Explian it seemed easier to find tigers milk than a live tiger .
What is man single minded about?
A, B and C were equal partners. Their Balance- Sheet as on 31st December,2002 was as follows :
Balance-Sheet LIABILITIES AMOUNT ASSETS AMOUNT
Bills Payable 20,000 Bank 20,000
Creditors 40,000 Stock 20,000
Gen. Reserve 30,000 Furniture 28,000
Profit and Loss a/c 6,000 Debtors 45,000
Capitals: Less: Prov. for D/D -5,000 40,000
A 60,000 Land and Building 1,20,000
C 22,000 1,32,000
B retired on 1st jan.2003. A and C decided to continue the business as equal partners on the following terms :
A] G/W of the firm was valued at Rs. 57,600
B] Provision for D/D is maintained at 10%
C] Land and Building is to be increased to Rs. 1,32,000
D] Furniture is to be reduced by Rs.8,000
E] Rent outstanding was Rs. 1,500
Remaining partners decided to bring sufficient cash in the business to pay off B and maintaining a bank balance of Rs. 24,800.
Prepare necessary Ledger a/cs and Balance- Sheet.
What does creditors written back mean ? Is it a profit or loss , according to the answers of the previous question I asked it's a loss and the creditors would increase, but in the actual answer creditors are decreased and it's a profit
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