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Standard XII

Accountancy

Partner's Capital Accounts

Cost of Lase ...

Question

Cost of Lase paid Rs. 20,000, Annuity factor @ 5% Interest for 4 years is Rs. 0.2820. The net charge to Profit & Loss Account is:

Rs. 5,640

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Rs. 1,000

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Rs, 4,640

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None of these

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Solution

The correct option is A Rs. 5,640
Net charge to be charged to Profit and loss account
= Amount x Annuity charge
= RS-20,000 x 0.2820
= RS-5,640

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Similar questions

A and B entered into partnership with capitals of Rs 4,00,000 and Rs 2,00,000 respectively and agreed to share profits & losses in the ratio of 3:2. Their partnership deed provided that interest on capital shall be allowed at 6% p.a. and it is to be treated as a charge against profits. Prepare the relevant account to allocate the profit in the following alternative cases :

(i) If profit for the year is Rs 80,000;

(ii) If profit for the year is Rs 20,000;

(iii) If loss for the year is Rs 20,000.

Q. Gross Profit Rs 1,20,000, Rent Rs 10,000, Salary Rs 30,000, Commission paid Rs 14,000 Interest on Loan Rs 10,000. Advertising Rs 8,000, Discount received Rs 6,000, Printing & Stationery Rs 4,000, Legal charges Rs 10,000, Bad Debts Rs 2,000, Depreciation Rs 4,000, Interest received Rs 8,000, Loss by life Rs 6,000. The net Profit for the year is :

X

and

Y

are partners sharing profits and losses in the ratio of

2 : 3

with capitals of

R s . 2, 00, 000

and

R s . 1, 00, 000

respectively. Pass the necessary Journal entry or entries for distribution of profit/loss for the year ended 31st March, 2018 in each of the alternative cases:
Case 1. If Partnership Deed is silent as to the interest on capital and the profit for the year is

R s . 20, 000

.
Case 2. If Partnership Deed provides for interest on capital @

6 %

p.a. and loss for the year is

R s . 15, 000

.
Case 3. If Partnership Deed provides for-interest on capital @

6 %

p.a. and the profit for the year is

R s . 21, 000

.
Case 4. If Partnership Deed provides for interest on capital @

6 %

p.a. as a charge on profit and the profit for the year is

R s . 20, 000

.
Case 5. If Partnership Deed provides for interest on capital @

6 %

p.a. as a charge on profit and the profit for the year is

R s . 2, 000

.
Case 6. If Partnership Deed provides for interest on capital @

6 %

p.a. as a charge on profit and the profit for the year is

R s . 18, 000

Simmi and Sonu are partners in a firm, sharing profits and losses in the ratio of 3:1. The profit and loss account of the firm for the year ending March 31, 2017 shows a net profit of Rs 1,50,000. Prepare the Profit and Loss Appropriation Account by taking into consideration the following information:

(i) Partners capital on April 1, 2016;

Simmi, Rs 30,000; Sonu, Rs 60,000;

(ii) Current accounts balances on April 1, 2016;

Simmi, Rs 30,000 (cr.); Sonu, Rs 15,000 (cr.);

(iii) Partners drawings during the year amounted to

Simmi, Rs 20,000; Sonu, Rs 15,000;

(iv) Interest on capital was allowed @ 5% p.a.;

(v) Interest on drawing was to be charged @ 6% p.a. at an average of six months;

(vi) Partners’ salaries : Simmi Rs 12,000 and Sonu Rs 9,000. Also show the partners’ current accounts.

A & B are partners. The net divisible profit as per profit & loss appropriation account is Rs 2,50,000. The total interest on partners drawings is Rs 4,000. A's salary is Rs 4,000 per quarter & B`s salary is Rs 40,000 per annum. Calculate the net profit/ loss for the year.

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Cost of Lase paid Rs. 20,000, Annuity factor @ 5% Interest for 4 years is Rs. 0.2820. The net charge to Profit & Loss Account is:

The correct option is A Rs. 5,640Net charge to be charged to Profit and loss account= Amount x Annuity charge = RS-20,000 x 0.2820= RS-5,640

The correct option is A Rs. 5,640
Net charge to be charged to Profit and loss account
= Amount x Annuity charge
= RS-20,000 x 0.2820
= RS-5,640