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Simmi and Sonu are partners in a firm, sharing profits and losses in the ratio of 3:1. The profit and loss account of the firm for the year ending March 31, 2017 shows a net profit of Rs 1,50,000. Prepare the Profit and Loss Appropriation Account by taking into consideration the following information: (i) Partners capital on April 1, 2016; Simmi, Rs 30,000; Sonu, Rs 60,000;(ii) Current accounts balances on April 1, 2016; Simmi, Rs 30,000 (cr.); Sonu, Rs 15,000 (cr.);(iii) Partners drawings during the year amounted to Simmi, Rs 20,000; Sonu, Rs 15,000;(iv) Interest on capital was allowed 5% p.a.;(v) Interest on drawing was to be charged 6% p.a. at an average of six months;(vi) Partners’ salaries : Simmi Rs 12,000 and Sonu Rs 9,000. Also show the partners’ current accounts. |
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Answer» Simmi and Sonu are partners in a firm, sharing profits and losses in the ratio of 3:1. The profit and loss account of the firm for the year ending March 31, 2017 shows a net profit of Rs 1,50,000. Prepare the Profit and Loss Appropriation Account by taking into consideration the following information:
(i) Partners capital on April 1, 2016; Simmi, Rs 30,000; Sonu, Rs 60,000; (ii) Current accounts balances on April 1, 2016; Simmi, Rs 30,000 (cr.); Sonu, Rs 15,000 (cr.); (iii) Partners drawings during the year amounted to Simmi, Rs 20,000; Sonu, Rs 15,000; (iv) Interest on capital was allowed 5% p.a.; (v) Interest on drawing was to be charged 6% p.a. at an average of six months; (vi) Partners’ salaries : Simmi Rs 12,000 and Sonu Rs 9,000. Also show the partners’ current accounts.
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