A,B and C are partners in a firm Share profit 5:3:2 There capital are 3 lakh,2lakh and 1 - Accountancy - Accounting for Not-for-Profit Organisation

Question

A,B and C are partners in a firm Share profit 5:3:2 There capital
are 3 lakh,2lakh and 1 lakh respectively Interest on capital is
allowed @10% on their capital and firm has a net profit before
Interest on capital 80,000 Calculate interest on capital and
distribution of profit

Rachna Puneet Mehta · Accepted Answer

Dear student
profit and loss appropriation A/c
Dr Cr

particular
Rs
particular
Rs

To interest on capital A/c
A : 3,00,000 X 10 % = 30,000
B : 2,00,000 X 10% = 20,000
C: 1,00,000 X 10%= 10,000

60,000
By profit and loss A/C- net profit
80,000

To profit traneferred to
A's capital A/c:20,000 X 5/10=10,000
B's Capital A/c: 20,000 X 3/10 = 6,000
C's capital A/c : 20,000 X 2 /10 =4,000
20,000

80,000

â€‹â€‹â€‹â€‹â€‹Regards

particular	Rs	particular	Rs
To interest on capital A/c A : 3,00,000 X 10 % = 30,000 B : 2,00,000 X 10% = 20,000 C: 1,00,000 X 10%= 10,000	60,000	By profit and loss A/C- net profit	80,000
To profit traneferred to A's capital A/c:20,000 X 5/10=10,000 B's Capital A/c: 20,000 X 3/10 = 6,000 C's capital A/c : 20,000 X 2 /10 =4,000	20,000
	80,000		80,000

A,B and C are partners in a firm. Share profit 5:3:2. There capital are 3 lakh,2lakh and 1 lakh respectively. Interest on capital is allowed @10% on their capital and firm has a net profit before Interest on capital 80,000. Calculate interest on capital and distribution of profit.