A , B and C are partners with fixed capitals of 1,00,000 , 200,000 and
3,00,000 respectively. Their partnership deed provides that :
(a) A is to be allowed a monthly salary of 600 and B is to be allowed a
monthly salary of 400.
(b) C will be allowed a commission of 5% of the net profit after
allowing salaries of A and B.
(c) Interest is to be allowed on capitals @ 6%.
(d) Interest will be charged on partners annual drawings at 4%.
(e) The annual drawings were :B 10,000 and C 15,000.
The net profit for the year ending 31st march, 2014 amounted to
1,72,000.
Prepare P&L Appropriation account.
[Ans: Share of profit 39,000 to each partner.]

Dear Student,



Regards,

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                             PROFIT AND LOSS APPROPRIATION A/C
PARTICULARS                      AMOUNT       PARTICULARS                    AMOUNT

TO SALARY                            12000             BY NET PROFIT
A        7200                                                     BY INT. ON DRAWINGS     1000
B       4800                                                      B               400
TO INT. ON CAPITAL             36000               C              600
A        6000
B       12000
C       18000
TO C'S COMMISSION           8000                                                              
                                              56000                                             173,000
TO DIVISIBLE PROFIT        117000
A                 39000
B                 39000
C                39000                                                                                       
                                             173000                                          173000
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