$A$ and $B$ are partners. A's Capital is $R s . 1, 00, 000$ and B's Capital is $R s . 60, 000$ . Interest on capital is payable @ 6% p.a. $B$ is entitled to a salary of $R s . 3, 000$ per month. Profit for the current year before interest and salary to B is $R s . 80, 000$ .
Prepare Profit and Loss Appropriation Account.

Open in App

Solution

Profit and Loss Appropriation a/c
( for the year ended......)
Dr. Cr.
Particulars Amount Particulars Amount
To Interest on capital
- A
- B
6000
3600 By Profit a/c
(before interest and salary) 80000
To Salary to B (3000*12) 36000
To Profit transferred to:
- A's Capital a/c
- B's Capital a/c
17200
17200

80000 80000

Suggest Corrections

Similar questions

Q. A and B are partners A's capital is Rs. 10,000 and B's capital is Rs. 6,000. Interest on capital is payable @ 6% p.a. B is entitled to a salary of Rs. 300 per month. Profit to the year before interest and salary to B is Rs. 8,000. Profits between A and B will be divided:

Q. C and D are partners in a firm; C has contributed Rs. 1,00,000 and D Rs. 60,000 as capital. Interest is payable @ 6% p.a. and D is entitled to a salary of 3,000 per month. In 2017-18, the profit was Rs. 80,000 before interest and salary. Divide the amount between C and D.

X and Y are partners. X's capital is Rs 10,000, Y's capital is Rs 6,000. Interest is payable at 6% p.a. Y is entitled to a salary of Rs 300 per month. Profits for current year before charging any interest and salary to Mr. Y is Rs 8,000. Divide the profit between X and Y.

Q. A and B are partners sharing profits in the ratio of 3 : 2. with capitals of Rs. 50,000 and Rs. 30,000 respectively. Interest on capital is agreed @ 6% p.a. B is to be allowed an annual salary of Rs. 2,500. During the year profit prior to interest on capital but after charging B's salary amounted to Rs. 12,500. A provision of 5% of the profits is to be made in respect of Manager's Commission. Prepare an account showing the allocation of profits and the Partners' Capital Accounts.

Q. X and Y are partners with capital of Rs 1,00,000 and Rs. 80,000 respectively on 1st April 2016 and their profit sharing ratio is 2:1. Interest on capital is agreed @12% p.a. Y is to be allowed an annual salary of Rs. 6,000. The profit for the year ended 31st March, 2017 amounted to Rs.50,000.Manager is entitled to a commission of 10% of the profits. Prepare Profit and Loss Appropriation Account.

Join BYJU'S Learning Program

Particulars	Amount	Particulars	Amount
To Interest on capital - A - B	6000 3600	By Profit a/c (before interest and salary)	80000
To Salary to B (3000*12)	36000
To Profit transferred to: - A's Capital a/c - B's Capital a/c	17200 17200
	80000		80000

A and B are partners. A's Capital is Rs.1,00,000 and B's Capital is Rs.60,000. Interest on capital is payable @ 6% p.a. B is entitled to a salary of Rs.3,000 per month. Profit for the current year before interest and salary to B is Rs.80,000. Prepare Profit and Loss Appropriation Account.