Plz solve the second part of question no. 4
Dear student
Profit and loss appropriation A/c
for the year ended 31st march, 2020
Dr. Cr.
working notes:
1) interest on capital of brij= rs 10,00,000 X 12% = rs 1,20,000
interest on capital of nandan = rs 15,00,000 X 12% = rs 1,80,000
but there is profit of rs 2,00,000 and sum of interest on capital is rs 3,00,000 i.i ( rs 1,20,000 + rs 1,80,000)
therefore, rs 2,00,000 will be adjusted between them in the ratio of 2: 3.
and share of interest on capital will be as follows: because profit is less available
interest on capital for brij : 2,00.000 X 2/5 = rs 80,000
interest on capital for nandan : 2,00,000 X 3/5 = rs 1,20,000
Regards
Profit and loss appropriation A/c
for the year ended 31st march, 2020
Dr. Cr.
| particular | Rs | Particular | Rs |
| To interest on capital A/c brij :rs 80,000 (w.n.1) nandan 1,20,000(w.n1) |
2,00,000 |
By profit and loss A/c- net profit | 2,00,000 |
| 2,00,000 | 2,00,000 | ||
1) interest on capital of brij= rs 10,00,000 X 12% = rs 1,20,000
interest on capital of nandan = rs 15,00,000 X 12% = rs 1,80,000
but there is profit of rs 2,00,000 and sum of interest on capital is rs 3,00,000 i.i ( rs 1,20,000 + rs 1,80,000)
therefore, rs 2,00,000 will be adjusted between them in the ratio of 2: 3.
and share of interest on capital will be as follows: because profit is less available
interest on capital for brij : 2,00.000 X 2/5 = rs 80,000
interest on capital for nandan : 2,00,000 X 3/5 = rs 1,20,000
Regards