Q 10

Dear Student
 
 Profit and Loss Appropriation A/c 
               
 Date   Particulars     Amount   Date   Particulars     Amount 
       (Rs)         (Rs) 
   Net Loss              79,800        
   (After Rent and Interest on Loan)             
               
               
           Loss transferred     
           Bat           31,920  
           Ball           47,880          79,800
               
               
               79,800                79,800

 Calculation 
 Net Profit / (Loss) before Rent and Interest on Loan                (9,000)
 Less : Rent for Bat's Property   5,000 x 12           (60,000)
Less : Interest on loan    
 Bat    2,40,000 x 6% x 6/12             (7,200)
 Ball   1,20,000 x 6% x 6/12             (3,600)
     
 Total Profit / (Loss) to be Appropriated             (79,800)
Share of Profit :    
 Bat   79,800 x 2/5           (31,920)
 Ball   79,800 x 3/5           (47,880)


Since rent and Interest on loan are charge against profit, they would be shown in Profit and loss Account.


Regards

 

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