Please solve this also please help me in all questions ???? Please solve this very soon
Dear Student,
Notes:
(a) Since, the firm has incurred losses during the year interest on capital and salary shall not be allowed to the partners (since they are treated as appropriations).
(b) Net loss is shared in the capital ratio i.e. 6:4 (or 3:2)
(c) Interest on loan is allowed @ 6% p.a. for 9 months on the amounts advanced as loans.
| Profit and Loss Account for the year ended March 31, 2019 | |||||
| Dr. | Cr. | ||||
| Particulars | Amount Rs | Particulars | Amount Rs | ||
| Net Loss | 17,250 | Net Loss (Divisible) | |||
| Interest on Loan | A | 72,000 | |||
| A | 4,500 | B | 48,000 | 1,20,000 | |
| B | 2,250 | 6,750 | |||
| Rent A/c (24,000*4) | 96,000 | ||||
| 1,20,000 | 1,20,000 | ||||
Notes:
(a) Since, the firm has incurred losses during the year interest on capital and salary shall not be allowed to the partners (since they are treated as appropriations).
(b) Net loss is shared in the capital ratio i.e. 6:4 (or 3:2)
(c) Interest on loan is allowed @ 6% p.a. for 9 months on the amounts advanced as loans.