Q How 18000 and 12000 came which they shared profit and loss appropriation A/c Triphati and - Accountancy - Accounting for Partnership Fundamentals

Question

Q How 18000 and 12000 came which they shared profit and loss
appropriation A/c

Triphati and Chauhan are partners in a firm sharing profits and
losses in the ratio of 3:2 Their capitals were Rs 60,000 and Rs
40,000 as on January 01, 2005 During the year they earned a profit
of Rs 30,000 According to the partnership deed both the partners
are entitled to Rs 1,000 per month as Salary and 5% interest on
their capital They are also to be charged an interest of 5% on
their drawings, irrespective of the period, which is Rs 12,000 for
Tripathi, Rs 8,000 for Chauhan Prepare Partner's Accounts when,
capitals are fixed

Neha Chopra · Accepted Answer

Dear Student

they would not get 18,000 and 12,000 as profits, Please refer the
Solution to the question below:

Profit and Loss Appropriation A/c

Date
Particulars

Amount
Date
Particulars

Amount

(Rs)

Salary :

Net profit

30,000

Tripathi
12,000

Chauhan
12,000
24,000

Interest on Capital :

Tripathi
3,000

Interest on Drawings

Chauhan
2,000
5,000

Tripathi
600

Chauhan
400
1,000

Profit Transferred :

Tripathi
1,200

Chauhan
800
2,000

31,000

Partner's Capital A/c (Fixed Capital)

Particulars
Tripathi
Chauhan
Particulars
Tripathi
Chauhan

Balance b/d
60,000
40,000

Bal C/d
60,000
40,000

60,000
40,000

Partner's Current A/c

Particulars
Tripathi
Chauhan
Particulars
Tripathi
Chauhan

Balance b/d
0
0

Interest on Drawings
600
400
Salary
12,000
12,000

Drawings
12,000
8,000

Interest on Capital
3,000
2,000

Profit and loss Appropriation
1,200
800

Bal C/d
3,600
6,400

16,200
14,800

Calculation

Net Profit
available for Appropriation

30,000

Add: Interest on
Drawings

Tripathi
12,000 x 5%
600

Chauhan
8,000 x 5%
400

Total Profit
available for Appropriation
31,000

Less : Salary

Tripathi
1,000 x 12
(12,000)

Chauhan
1,000 x 12
(12,000)

Profit left after Salary

7,000

Less: Interest on
Capital

Tripathi
60,000 x 5%
(3,000)

Chauhan
40,000 x 5%
(2,000)

Divisible Profits

2,000

Share of Profit :

Tripathi
2,000 x 3/5
1,200

Chauhan
2,000 x 2/5
800

Hope this helps
Please get back to us in case of any query
Regards

Profit and Loss Appropriation A/c

Date	Particulars		Amount	Date	Particulars		Amount
			(Rs)				(Rs)
	Salary :				Net profit		30,000
	Tripathi	12,000
	Chauhan	12,000	24,000

	Interest on Capital :
	Tripathi	3,000			Interest on Drawings
	Chauhan	2,000	5,000		Tripathi	600
					Chauhan	400	1,000

	Profit Transferred :
	Tripathi	1,200
	Chauhan	800	2,000


			31,000				31,000

Calculation
Net Profit available for Appropriation		30,000
Add: Interest on Drawings
Tripathi	12,000 x 5%	600
Chauhan	8,000 x 5%	400
Total Profit available for Appropriation		31,000
Less : Salary
Tripathi	1,000 x 12	(12,000)
Chauhan	1,000 x 12	(12,000)
Profit left after Salary		7,000
Less: Interest on Capital
Tripathi	60,000 x 5%	(3,000)
Chauhan	40,000 x 5%	(2,000)
Divisible Profits		2,000
Share of Profit :
Tripathi	2,000 x 3/5	1,200
Chauhan	2,000 x 2/5	800