# A,B and C were partners in a firm having capitals of Rs 60,000 Rs 60,000 and Rs 80,000 respectively. There current account balance were A-10,000 , B-5000 and C-2000 (Dr.).According to the partnership deed the partners were entitled to an intt. on capital @ 5% p.a. C being the working partner was also entitled to a salary of Rs 6,000 p.a. The profits were to be divided as follows:(i)The first Rs 20,000 in proportion to their capitals.(ii)next Rs 30,000 in the ratio of 5:3:2.(iii)remaining profits to be shared equally.During the year the firm made a profit of Rs 1,56,000 before charging any of the above items. prepare the profit and loss appropriation on A/C.

 Profit and Loss Appropriation Accountfor the year ended Dr. Cr. Particulars AmountRs Particulars AmountRs Interest on Capital A/c: Profit and Loss A/c 1,56,000 A 3,000 B 3,000 C 4,000 10,000 C( Salary) 6,000 Profit transferred in Capital Ratio to: A’s Capital A/c 6,000 B’s Capital A/c 6,000 C’s Capital A/c 8,000 20,000 Profit transferred in 5:3:2 to: A’s Capital A/c 15,000 B’s Capital A/c 9,000 C’s Capital A/c 6,000 30,000 Profit transferred equally to: A’s Capital A/c 30,000 B’s Capital A/c 30,000 C’s Capital A/c 30,000 90,000 1,56,000 1,56,000

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