wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Bhanu and Partab are partners sharings profits eqully. Their fixed capitals as on 1st April, 2017 are ₹ 8,00,000 and ₹ 10,00,000 respectively. Their drawings the year were ₹ 50,000 and ₹ 1,00,000 respectively. Interest on Capital is a charge and is to be allowed @ 10% p.a. and interest on drawings is to be charged @ 15% p.a. Profit for the year ended 31st March, 2018 was ₹ 1,20,000.
Prepare Profit and Loss Appropriation Account.

Open in App
Solution

Profit and Loss Appropriation Account

for the year ended March 31, 2018

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Interest on Capital A/c:

Profit and Loss A/c

1,20,000

Bhanu’s Current A/c

80,000

Interest on Drawings A/c:

Partap’s Current A/c

1,00,000

1,80,000

Bhanu’s Current A/c

3,750

Partap’s Current A/c

7,500

11,250

Loss transferred to

Bhanu’s Current A/c

24,375

Partap’s Current A/c

24,375

48,750

1,80,000

1,80,000


flag
Suggest Corrections
thumbs-up
22
similar_icon
Similar questions
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Undersubscription
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon