Q 15
Dear Student
Please note that:
1. Since the firm has incurred a loss, Interest on capital and Salary has not been provided as they both are appropriation against profits.
2. Interest on Drawings has been provided for an average period of 6 months.
Regards
Profit and Loss Appropriation A/c | |||||||
Date | Particulars | Amount | Date | Particulars | Amount | ||
(Rs) | (Rs) | ||||||
Net Loss | 100,000 | Interest on Drawings | |||||
Reema | (60,000 x 10% x 6/12) | 3,000 | |||||
Seema | (60,000 x 10% x 6/12) | 3,000 | |||||
Loss Transferred to Partners Capital A/c | 47,000 | ||||||
Reema - 94,000 x 1/2 | 47,000 | 94,000 | |||||
Seema - 94,000 x 1/2 | |||||||
100,000 | 100,000 |
Please note that:
1. Since the firm has incurred a loss, Interest on capital and Salary has not been provided as they both are appropriation against profits.
2. Interest on Drawings has been provided for an average period of 6 months.
Regards