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Shiv and Hari entered into partnership on 1st April, 2015, contributing Rs 5,00,000 and Rs 2,00,000 respectively. Hari also introduced Rs 1,00,000 as additional capital on 1st July, 2015. They agreed to share profits and losses in the ratio of 3:2. The following information is provided regarding the partnership : (i) Shiv and Hari, each are allowed a salary of Rs 5,000 per quarter. (ii) Interest is to be allowed on Capitals at 8% p.a. and charged on drawings at 10% p.a. Drawings of Shiv and Hari during the year were Rs 12,000 and Rs 10,000 respectively. Profit as at 31st March, 2016 before the above mentioned adjustments was Rs 1,96,000. Prepare : (i) Necessary journal entries relating to appropriation of profits, (ii) Profit and Loss Appropriation A/c, and (iii) Partner's Capital A/cs. |
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Answer» Shiv and Hari entered into partnership on 1st April, 2015, contributing Rs 5,00,000 and Rs 2,00,000 respectively. Hari also introduced Rs 1,00,000 as additional capital on 1st July, 2015. They agreed to share profits and losses in the ratio of 3:2. The following information is provided regarding the partnership : (i) Shiv and Hari, each are allowed a salary of Rs 5,000 per quarter. (ii) Interest is to be allowed on Capitals at 8% p.a. and charged on drawings at 10% p.a. Drawings of Shiv and Hari during the year were Rs 12,000 and Rs 10,000 respectively. Profit as at 31st March, 2016 before the above mentioned adjustments was Rs 1,96,000. Prepare : (i) Necessary journal entries relating to appropriation of profits, (ii) Profit and Loss Appropriation A/c, and (iii) Partner's Capital A/cs. |
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