Profit year ended 31st March. 2018 was Rs. 5,000 which was divided in the agreed ratio, but interest @ 5% p.a on capital and @ 6% pa. on drawings was inadvertently enquired. Adjust interest on drawings on an average basis for 6 months, Give the adjustment entry.
s withdrawal 40000 from firm on 15 sep. 2013
t took garments from firm cost 48000 on the other hand r withdrawal 400000 from her capital on 1 jan. 2014
partnership deed provide interest on drawing @6% p.a. after making final acc it was discovered that interest on drawing had not charged . pass journal entries and show working notes clearly
please solve it as fast as possible
Q11. Praveen, Sahil and Riya are partners having fixed capital of Rs. 2,00,000, Rs. 1,60,000 and Rs. 1,20,000 respectively. They share profit in the ratio of 3:1: 1. The partnership deed provided for the following which were not recorded in the books.
i. Interest on Capital @5% p.a.
ii. Salary to Praveen Rs. 1,500 p.m. and to Riya Rs. 1,000 p.m.
iii. Transfer of profit to General Reserve Rs. 10,000. Net profit for year ended 31st March 2015 was Rs. 1,00,000.
Pass necessary rectifying entry for the above adjustment in the books of the firm. Also show your working clearly.
Are there solutions for Accounts book T.S Grewal ?
(i) A and C were entitled to a salary of Rs 1,500 p.a.
(ii) B was entitled to a salary of Rs4,500
(iii) B and C had guaranteed a minimum profit of Rs 35000 p.a. to A
(iv) Profits were to be shared in the ratio of 3:3:2
Pass necessary journal entry for the above adjustment in the books of the firm.
Profit and loss adjustment is another name for revaluation account. But in the study material of chap 1- interest on capital, PL adjustment account is made instead of PL appropriation. Why?
Q180. Ajay, Binay & Chetan were partners sharing profits in the ratio 3:3:2. The Partnership Deed provided for the following:
(i) Salary of Rs. 2000 per quarter to Ajay & Binay.
(ii) Chetan was entitled to a commission of Rs. 8000.
(iii) Binay was guaranteed a profit of Rs. 50,000 p.a.
The profit of the firm for the year ended 31st March, 2015 was Rs. 1,50,000 which was distributed among Ajay, Binay & Chetan in the ratio 2:2:1, without taking into consideration the provisions of Partnership Deed. Pass Necessary rectifying entry for the above adjustments in the books of the firm. Show your workings clearly.
[Ans. Dr. Ajay's Capital A/c- Rs. 6400; Binay's Capital A/c. Rs. 2000; Cr. Chetan's Capital A/c. 8400].
why is goodwill considered as an intangible asset but not a fictitious asset?
what is the difference between profit and loss and profit and loss appropriation
what do you understand by reconstitution of a partnership firm?
Q. X and Y are partners sharing profits and losses in the ratio of 3:2. They employed Z as their Manager to whom they paid a salary of Rs. 7,500 per month. Z had deposited Rs. 2,00,000 on which interest was payable @9% p.a. At the end off the accounting year (i.e. 31st March, 2018) 201718 (after division of the year's profits), it was decided that Z should be treated as a partner with effect from 1st April, 2014 with 1/6 th share of profits, his deposit being considered as capital carrying interest 6% p.a. like capitals of other partners. The firm's profits and losses after allowing interest on capitals were -2014-15 Profit Rs. 5,90,000; 2015-16 Profit Rs.6,26,000; 2016-17 Loss Rs. 40,000 and 2017-18: Profit Rs.7,80,000. Record necessary Journal entries to give effect to the above.
give the difference b/w fixed and fluctuating capital accounts.
Prepare Profit and Loss Appropriation Account and the Partners' Capital Accounts at the end of the year after considering the following items:
(a) Interest on Capital is to be allowed @ 5% p.a.
(b) Interest on loan advanced by Kajal for the whole year, the amount of loan being Rs. 30,000.
(c) Interest on partners' drawing @6% p.a. Drawings: Sajal Rs. 10,000 and Kajal Rs. 8,000.
(d) 10% of divisible profits is to be transferred to Reserve.
(e) They earned profit of Rs. 70,620 for the year ended 31st March, 2016.
difference between charge against profit and charge on profits?????
65. Mita and Usha are partners in a firm sharing profits in the ratio of 2:3. Their capital accounts as on 1st April, 2015 showed balance of Rs?1,40,000 and Rs 1,20,000 respectively . the drawings of mita and Usha?during the year 2015-16 were Rs 32,000 and Rs 24,000 respectively . Both the amount were withdrawn on 1st January 2016. It was subsequently?found that the following item had been omitted while preparing the final accounts for the year ended 31st March,2016
How to prepare revaluation account?
(i) Interest on Capital @ 5% p.a.
(ii) Salary to Praveen Rs 1,500 p.m. and to Riya Rs 1,000 p.m.
(iii) Transfer of profit to General Reserve Rs 10,000. Net Profit for the year ended 31st March, 2015 was Rs 1,00,000.
Pass necessary rectifying entry for the above adjustments in the books of the firm. Also show your working clearly.
help me in question no.48 of D.K goel pg no.1.91
making adjustments for profits and drawings were Rs 3,20.000, Rs 2,40.000 and Rs 1,60.000
respectively. Subsequently it was discovered that interest on capital and drawings had been omitted.
(i) The profit of the year ended 31st March, 2014 was Rs 90,000.
(ii) During the year, Esha and Manav each withdrew a sum of Rs 48,000 in equal instalments in the
middle of every month and Daman withdrew Rs 60,000
(iii) The interest on drawings was to be charged @ 5% p.a. and interest on capital was to be allowed @ 10%
(it') The profit-sharing ratio among the partners was 3:2:1
Showing your workings clearly, pass the necessary rectifying entry.
Show the treatment of interest on loan in the profit and loss appropriation account and profit and loss account????
Would interset on capital and interest on loan would be having the same treatment in profit and loss appropriation account????
What will be the journal entry to it?????????and Explain it????with proper example??????
In the absence of partnership deed, specify the rules relating to the following:
(i) Sharing of profits and losses.
(ii) Interest on partner’s capital.
(iii) Interest on Partner’s drawings.
(iv) Interest on Partner’s loan
(v) Salary to a partner.
who is a minor partner???
15. Reema and Seema are partner sharing profit equally. The partnership deep provides that both Reema and Seema will get monthly salary of Rs. 5,000 each. Interest on Capital will be allowed @ 5% P. A and interest on Drawings Will be Charged @ 10% p.a. Their capitals were Rs. 5,00,000 each and drawing during the year were Rs. 60.000 each.
The firm incurred a loss of Rs. 1,00.000 during the year ended 31st March, 2018.
Prepare Profit and loss Appropriation Account for the year ended 31st March. 2018.
where we post provident fund in revaluation acoount?
How to score 100/100 in accountancy? what are the common mistakes students commit that they get 99, 98 etc? Is the narration also evaluated?
Give the necessary adjusting journal entry with working notes.
pls give the solution that who the ammunt come
T.S.Grewal's double entry book keeping page no.3.22 q.no. 12 , page no. 3.23 q.no. 13,14, page no.3.24 q.no.15,16
(a) Interest on capitals @ 6% p.a,
(b) Interest on drawings @ 6% p.a.;
(c) Mudit was entitled to a commission of Rs. 4,000 for the whole year.
Showing your working clearly pass a rectifying entry in the books of the firm.
What is deferred revenue expenditure ?
91. Ajay, Binay and Chetan were partners sharing profits in the ratio of 3:3:2. The partnership deed provided for the following:
(i) Salary of Rs. 2,000 per quarter to Ajay and Binay.
(ii) Chetan was entitled to commission of Rs 8000.
(iii) Binay was guaranteed a profit of Rs. 50,000 p.a.
The profit of the firm for the year ended 31st March, 2015 was Rs. 1,50,000 which was distributed among Ajay, Binay and Chetan is the ratio of 2:2:1, without taking into consideration the provisions of Partnership Deep. Pass necessary rectifying entry for the above adjustments in the books of the firm. Show your working clearly.
what is difference between drawings and withdrawn capital?
Mannu and Shristhi are partners in a firm sharing profit in the ratio of 3 : 2. Following is the balance sheet of the firm as on March 31, 2013.
Amount
Amount
Liabilities
Rs
Assets
Rs
Mannu’s Capital
30,000
Drawings :
Shristhi’s Capital
10,000
40,000
Mannu
4,000
Shristhi
2,000
6,000
Other Assets
34,000
40,000
40,000
Profit for the year ended March 31, 2013 was Rs 5,000 which was divided in the agreed ratio, but interest @ 5% p.a. on capital and @ 6% p.a. on drawings was inadvertently enquired. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry.
When should we calculate interest on drawings for six months????
When it is given in the question that calculate interest on drawings i) @ 6% what to do?
ii) @ 6% p.a. what to do?
Q. On 31st March, 2014, the balances in the Capital Accounts of Saroj, Mahinder and Umar after making adjustments for profit and drawings, etc, were Rs.80,000, Rs.60,000 and Rs.40,000 respectively . Subsequently, it was discovered that the interest on capital and drawings has been omitted.
(a) The profit the year ended 31st March, 2014 was Rs.80,000.
(b) During the year Saroj and Mahinder each withdrew a sum of Rs. 24,000 in equal instalments in the end of each month and Umar withdrew Rs. 36,000
Pass necessary adjustment entry showing the working clearly.
The capital accounts of A and B stood at Rs.400000 and Rs.300000 after necessary adjustments in respect of the drawings and the net profits for the year ended 31st march 2012. It was subsequently ascertained that 5 % p.a. interest on capital and drawings were not taken into account in arriving at the net profit. The drawings of the partners had been; A- Rs.12000 drawn at the end of each quarter and B- Rs.18000 drawn at the end of each half year. The profits for the year as adjusted amounted to Rs.200000. The partners share profits in the ratio 3:2.
You are required to paas the journal entries and show the adjusted capital accounts of the partners.
please help me with class 12th accountancy project
A , B , C were partners in a firm having capitals of rs. 50000, rs. 50000 and rs.100000. Thier current account balances were A : Rs.10000 , B : Rs.5000 and C : Rs.2000 (Dr.) . According to the partnership deed the partners were entitled to an interest on capital @ 10% p.a. C being the working partner was also entitled to a salary of Rs.12000p.a. The profits were to be divided as :
(a). The first Rs.20000 in proportion to their capitals.
(b). Next Rs. 30000 in the ratio of 5:3:2
(c). Remaining profits to be shared equally.
The firm made a profit of Rs.172000 before charging any of the above items . Prepare the profit and loss appropriation account and pass the necessary journal entries for the appropriation of profits.
Q. physical verification of inventory was done on 23 june.The value of inventory was Rs. 4,80,000. Following transactions took place b/w 23 and 30 june:
1. out of goods sent on consignment, goods costing Rs.24,000 were unsold.
2. purchases of Rs. 40,000 were made, out of which goods worth Rs. 16,000 were delivered on 5 july.
3. sales were Rs. 1,36,000 which include goods worth Rs.32,000 sent on approval till 7 july. half of these goods were returned before 30 june, but no intimation is available regarding the remaining goods. goods are sold at cost plus 25 %. however, goods costing Rs. 24000 had been sold for Rs. 12000. what is the value of inventory on 30 june and normal sales??
Prepare Profit and Loss Appropriation Account.
Mohan, Vijay and Anil are partners, the balance on their capital accounts being Rs 30,000, Rs 25,000 and Rs 20,000 respectively. In arriving at these figures, the profits for the year ended March 31, 2007 amounting to Rupees 24,000 had been credited to partners in the proportion in which they shared profits. During the tear their drawings for Mohan, Vijay and Anil were Rs 5,000, Rs 4,000 and Rs 3,000, respectively. Subsequently, the following omissions were noticed:
(a)
Interest on Capital, at the rate of 10% p.a., was not charged.
(b)
Interest on Drawings: Mohan Rs 250, Vijay Rs 200, Anil Rs 150 was not recorded in the books.
Record necessary corrections through journal entries.
plz experts reply to my queries fast !
CBSE has announced Date Sheet for Class-XII
01 March- English
06- March- Business STudies
15 March- Accountancy
20 March- Maths
30 March- Economics
All the Best for all the students
Q. . From the following Balance Sheet of Long and Short, calculate interest on capital @8% p.a. for the year
ended 31st March, 2015:
BALANCE SHEET at March, 2015
Short's Capital A/c
Profit and Loss Appropriation A/c (2014-15)
1,40,000
1,00,000
Drawings-Long
Other Assets
40,000
60,000
what is the treatment for manager's commission while mking profit and loss appropriation account? we have to put it in profit and loss appropriation ac or profit and loss ac? please explain for both the cases- before charging such commission and after charging such commission.
What is meant by profit and loss appropriation ? Why is it created ? Why can't the items of profit and loss appropriation account just be included in the profit and loss account instead of opening this account
(1)
Q2. A group of 60 persons want to form a partnership business in India. Can they do so? Give reason in support of your answer.?
(1)
Q3. At what rate will partners be entitled for remuneration in absence of partnership deed??
(1)
Q4. List anyone difference between Profit & Loss Appropriation Account and Profit & Loss Adjustment Account.
(1)
Q5. Kavita, Meenakshi and Gauri are partners doing a paper business in Ludhiana. After the accounts of partnership have been drawn up and closed, it was discovered that for the years ending 31st March 2013 and 2014, Interest on capital has been allowed to partners @ 6% p. a. although there is no provision for interest on capital in the partnership deed. Their fixed capitals were 2,00,000; 1,60,000 and 1,20,000
respectively. During the last two years they had shared the profits as under:
Year Ratio
31 March 2013 3 : 2 : 1
31 March 2014 5 : 3 : 2
You are required to give necessary adjusting entry on April 1, 2014.?
(3)
Q6. Mohit and Rohan share profits and losses in the ratio of 2:1. They admit Rahul as partner with 1/4 share in profits with a guarantee that his share of profit shall be at least Rs. 50,000. The net loss of the firm for the year ending March 31, 2006 was Rs. 1,60,000. Pass an entry for distribution of profits and guarantee?
(3)
Q7. Amit, Babita and Sona form a partnership firm, sharing profits in the ratio of 3 : 2 : 1, subject to the following :
(i) Sona?s share in the profits, guaranteed to be not less than Rs. 15,000 in any year.
(ii) Babita gives guarantee to the effect that gross fee earned by her for the firm shall be equal to her average gross fee of the proceeding five years, when she was carrying on profession alone (which is Rs. 25,000). The net profit for the year ended March 31, 2007 is Rs. 75,000. The gross fee earned by Babita for the firm was Rs. 16,000.You are required to prepare P & L Appropriation A/c.?
(3)
Q8. Sasta , Khasta and Pasta are in partnership , sasta and khasta are sharing profits in ratio of 3:1 and pasta receiving an annual salary of 32000 plus 5% of the profits after charging his salary his commission , or ? share in profits whichever is more . Any excess latter over former recived by pasta is, under the partnership deed, to be borne by sasta and khasta in 3:2 . the profit for the year ended 31 march 2011 came to be Rs. 168000 after charging pasta?s salary . Show the distributions of profits among the partners.
(3)
Q9. The net profit of X, Y and Z for the year ended March 31, 2006 was Rs. 60,000 and the same was distributed among them in their agreed ratio of 3 : 1 : 1. It was subsequently discovered that the under mentioned transactions were not recorded in the books :
(i) Interest on Capital @ 5% p.a.
(ii) Interest on drawings amounting to X Rs. 700, Y Rs. 500 and Z Rs. 300.
(iii) Partner?s Salary : X Rs. 1000, Y Rs. 1500 p.a.
The capital accounts of partners were fixed as : X Rs. 1,00,000, Y Rs. 80,000 and Z Rs.60,000. Record the adjustment entry.?
(4)
Q10. On March 31, 2003, after the close of books of accounts, the capital accounts of Ram, Shyam and Mohan showed balance of Rs. 24,000 Rs. 18,000 and Rs. 12,000, respectively. It was later discovered that interest on capital @ 5% and interest on drawings @ 10% had been omitted. The profit for the year ended March 31, 2003, amounted to Rs. 36,000 and the partner?s drawings had been Ram, Rs. 3,600; Shyam, Rs. 4,500 and Mohan, Rs. 2,700. The profit sharing ratio of Ram, Shyam and Mohan was 3:2:1. Calculate interest on capital and pass adjustment entry.?
(4)
?
Q11. A and B are partners sharing profits and losses in the ratio of3: 1. On 1st April, 2013, their capitals were:A-Rs.50,000 and B- Rs.3000. During the year ended 31st March, 2014, they earned net profit of Rs.74,000. The terms of partnership are:
(i) Interest on the capital is to be charged @ 6% p.a.
(ii) A will get commission @ 2% on turnover.
(iii) B will get a salary of Rs.500 per month.
(iv) B will get commission of 5% on profits after deduction of interest, salary and commission (including his own commission).
(v) A is entitled to a rent of Rs. 2,000 per month for the use of his premises by the firm. It is paid to him by cheque at the end of every month.
Partners' drawings for the year were: A- Rs. 8,000 and B- Rs. 6,000.
Turnover for the year was Rs. 3,00,000. After considering the above factors, you are required to prepare
Profit and Loss Appropriation Account and Capital Accounts of the Partners.?
Amit and Sumit are partners sharing profits and losses in the ratio
On March 31, 2013 the balance in the capital accounts of Eluin, Monu and Ahmed, after making adjustments for profits, drawing, etc; were Rs 80,000, Rs 60,000 and Rs 40,000 respectively. Subsequently, it was discovered that interest on capital and interest on drawings had been omitted. The partners were entitled to interest on capital @ 5% p.a. The drawings during the year were Eluin Rs 20,000; Monu, Rs 15,000 and Ahmed, Rs 9,000. Interest on drawings chargeable to partners were Eluin Rs 500, Monu Rs 360 and Ahmed Rs 200. The net profit during the year amounted to Rs 1,20,000. The profit sharing ratio was 3 : 2 : 1. Pass necessary adjustment entries.
X,Y,Z are partners in a firm sharing profits in 2:2:1 ratio. the fixed capitals of the partners were : X- rs. 500000 ; Y- rs . 500000 ; Z- rs. 250000. The partnership deed provides that interest on capital should be allowed @ 10 % p.a. and that Z should be allowed a salary of rs. 2000 per month . the profits of the firm for the year ended 31st march 2011 after debiting Z's salary were Rs. 400000. Prepare the profit and loss appropriation account.
Shristhi's Capital
10000
Shristhi's Drawings
Other Assets
2000
34000
Profit year ended 31st March. 2018 was Rs. 5,000 which was divided in the agreed ratio, but interest @ 5% p.a on capital and @ 6% pa. on drawings was inadvertently enquired. Adjust interest on drawings on an average basis for 6 months, Give the adjustment entry.
what is accounting cycle ?
ajoo and bajoo were in partnership sharing profits and losses in the proportion of 4:5 respectively. in appreciation of the services of their employee sajoo who was in reciept of salary of rs. 2400 p.a. and a commission of 5% on the net profits after charging such salary and commission, they took him into partnership as from 1-04-2011 giving him 1/8th share of profit.the agreement provided that any excess over his former remuneration to which sajoo becomes entitled will be paid out of ajoo's share of profits.the profits for the year ended 31st march, 2012 amountes to rs.57000. divide this between the partners.