1
Question
A, B and C are partners in a firm. A and B are to get annual salary of ₹ 1,20,000 p.a. each as they are fully involved in the business. Net profit for the year is ₹ 4,80,000. Determine the share of profit to be credited to each partner.
Open in App
Solution
Profit and Loss Appropriation Account
for the year ended …
Dr.
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Salary:
Profit and Loss A/c
4,80,000
A
1,20,000
B
1,20,000
2,40,000
Profit transferred to:
A’s Capital A/c
80,000
B’s Capital A/c
80,000
C’s Capital A/c
80,000
2,40,000
4,80,000
4,80,000
|
Profit and Loss Appropriation Account for the year ended … |
|||||
|
Dr. |
|
|
Cr. |
||
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
|
Salary: |
|
Profit and Loss A/c |
4,80,000 |
||
|
A |
1,20,000 |
|
|
|
|
|
B |
1,20,000 |
2,40,000 |
|
|
|
|
Profit transferred to: |
|
|
|
||
|
A’s Capital A/c |
80,000 |
|
|
|
|
|
B’s Capital A/c |
80,000 |
|
|
|
|
|
C’s Capital A/c |
80,000 |
2,40,000 |
|
|
|
|
|
4,80,000 |
|
4,80,000 |
||
|
|
|
|
|
||
Suggest Corrections
0
Similar questions