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38. A and B are partners sharing profits and losses in the ratio of 3:2. They invested capitals of21.00.000 and 50,000 respectively. Compute interest on capital and show distribution of profitsin each of the following alternative cases:(1) If the partnership deed is silent with regards to interest on capital and the profits forare 8,000.(m) If the partnership deed provides for interest on capital @ 5% p.a. and the profits for the yearare 7.500.(1) if the partnership deed provided for interest on capital @ 5% p.a. and the profits for the yearare *9.000.m # the partnership deed provided for interest on capital @ 5% p.a. losses for the year are6.000.(v) If the partnership deed provided for Interest on Capital @ 5% and the profits for the vear are*3.000(vi) If the partnership deed provides for Interest on Capital @ 5% p.a. even if it involves the firmin loss and the profits for they year are 5,000.An interest |
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Answer» Profit And Loss Account Particulars AMOUNT Particulars Amount To MANAGER;s commission (15000*5/100) 750 By profit before B's Salary (12500+2500) 15000 To Net profit T/f to P/L Appropriation Account 14250 Total 15000 Total 15000 Profit And Loss Appropriation Account Particulars Amount Particulars Amount To Interest on capital A = 50000*6% = 3000 B=30000*6% = 1800 4800 By net profit 14250 B's Salary 2500 To profit T/f to A's Capital A/c = 4170 B's Capital A/c = 2780 6950 Total 14250 Total 14250
Partners capital account Particulars A B Particulars A B By bal b/d 50000 30000 By Int on capital 3000 1800 salary 2500 To bal c/d 57170 37080 By P/L Appr A/c 4170 2780 Total 57170 37080 Total 57170 |
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