Question

A, B and C are partners sharing profits and losses in the ratio of $A\frac{1}{2},B\frac{3}{10},C\frac{1}{5}$ after providing interest @ 5% on their respective capitals, viz., A Rs. 50,000; B Rs. 30,000 and C Rs. 20,000 and allowing B and C a salary of Rs. 5,000 each per annum. During the year ended 31st March, 2018, A has drawn Rs. 10,000 and B and C in addition to their salaries have drawn Rs. 2,500 and Rs.1,000 respectively. The Profit and Loss Account for the year ended 31st March, 2018 showed a net profit of Rs. 45,000 before charging (a) interest on capital and (b) partners' salaries. On 1st April, 2017, the balances in the Current Accounts of the partners were A (Cr.) Rs. 4,500; B (Cr.) Rs. 1,500 and C (Cr.) Rs. 1,000. Interest is not charged on Drawings or Current Account balances. Show Partners' Capital and Current Accounts as at 31st March, 2018 after division of profits In accordance with the partnership agreement.

Answer 1

PROFIT AND LOSS APPROPRIATION ACCOUNT

Particulars	Amount	Particulars	Amount
To Interest on capital A= 50000*5%=2500 B=30000*5%=1500 C=20000*5%=1000	5000	By net profit	45000
To salary to B= 5000 C=5000	10000
To profit T/f to P's current A/c 15000 Q's current A/c 9000 R's current A/c 6000	30000
Total	45000	Total	45000

PARTNERS CAPITAL ACCOUNT

Particulars	A	B	C	Particulars	A	B	C
To balance c/d	50000	30000	20000	By balance b/d	50000	30000	20000
Total	50000	30000	20000	Total	50000	30000	20000

PARTNERS CURRENT ACCOUNT

Particulars	A	B	C	Particulars	A	B	C
To drawings	10000	7500	6000	By bal b/d	4500	1500	1000
				By Interest on capital	2500	1500	1000
By bal c/d	12000	9500	7000	By Salaries		5000	5000
				P/L Appropriation A/c	15000	9000	6000
Total	22000	17000	13000		22000	17000	13000