Q:- Nirmal and Pawan are partners sharing profits in the ratio of 3 :

1.	Q:- Nirmal and Pawan are partners sharing profits in the ratio of 3 : 2. The firm had given loan to Pawan of ₹35,00,000 on 1st April, 2019. Interest was to be charged @ 10% p.a. The firm took loan of ₹ 2,00,000 from Nirmal on 1st October, 2019. Before giving effect to the above, the firm incurred a loss of ₹ 10,000 for the year ended 31st March,2020.Determine the amount to be transferred to Profit and Loss Appropriation Account.
Answer» Given: Profit and loss sharing ratio = 3 : 2 Given amount of loan to Pawan = ₹ 3,500,000 Interest rate charged = 10% Value of the loan taken by the firm = ₹ 200,000 Loss incurred = ₹ 10,000 To find: The amount to be transferred to Profit and Loss Appropriation Account = ? Solution: The calculation is shown below: Net loss incurred for the year - ₹10,000 Add: Interest received on loan taken by the Pawan ₹ 350,000 (₹ 3500000 x 10/100) Less: Interest on loan taken by the firm - ₹12,000 (₹ 200000 x 6/100) Amount transferred ₹328,000 Hence, the amount to be transferred to Profit and Loss Appropriation Account is ₹328,000

Q:- Nirmal and Pawan are partners sharing profits in the ratio of 3 : 2. The firm had given loan to Pawan of ₹35,00,000 on 1st April, 2019. Interest was to be charged @ 10% p.a. The firm took loan of ₹ 2,00,000 from Nirmal on 1st October, 2019. Before giving effect to the above, the firm incurred a loss of ₹ 10,000 for the year ended 31st March,2020.Determine the amount to be transferred to Profit and Loss Appropriation Account.

Answer»

Given:

Profit and loss sharing ratio = 3 : 2

Given amount of loan to Pawan = ₹ 3,500,000

Interest rate charged = 10%

Value of the loan taken by the firm = ₹ 200,000

Loss incurred = ₹ 10,000

To find:

The amount to be transferred to Profit and Loss Appropriation Account = ?

Solution:

The calculation is shown below:

Net loss incurred for the year - ₹10,000

Add: Interest received on loan taken by the Pawan ₹ 350,000

(₹ 3500000 x 10/100)

Less: Interest on loan taken by the firm - ₹12,000

(₹ 200000 x 6/100)

Amount transferred ₹328,000

Hence, the amount to be transferred to Profit and Loss Appropriation Account is ₹328,000