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Standard XII

Accountancy

Past Adjustments

Reema and See...

Question

Reema and Seema are partners sharing profits equally. The Partnership Deed provides that both Reema and Seema will get monthly salary of $R s . 15, 000$ each, Interest on Capital will be allowed @ 5% p.a. and Interest on Drawings will be charged @ 10% p.a. Their capitals were $R s . 5, 00, 000$ each and drawings during the year were $R s . 60, 000$ each.
The firm incurred a loss of $R s . 1, 00, 000$ during the year ended 31st March, 2018.
Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018.

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Solution

Profit and Loss Appropriation a/c
(for the year ended 31st March,2018)
Dr. Cr.
Particulars Amount Particulars Amount
To Profit and Loss a/c 100000 By Interest on Drawings:
- Reema
- Seema
6000
6000
To Interest on Capital a/c
- Reema
- Seema
25000
25000 By Loss transferred to:
- Reema's Capital a/c
- Seema's Capital a/c
249000
249000
To Salary a/c
- Reema (1500012)
- Seema (1500012)
180000
180000
510000 510000

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B,V and M were in partnership sharing profits and losses in the ratio of 3 : 2 : 1. Their fixed capitals were Rs 5,00,000; Rs 4,00,000 and Rs 3,00,000 respectively. The partnership deed provided for the following :

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Q. (Profit and Loss Appropriation Account).

X

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and

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Q. Ashish and Aakash are partners sharing profit in the ratio of

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Particulars	Amount	Particulars	Amount
To Profit and Loss a/c	100000	By Interest on Drawings: - Reema - Seema	6000 6000
To Interest on Capital a/c - Reema - Seema	25000 25000	By Loss transferred to: - Reema's Capital a/c - Seema's Capital a/c	249000 249000
To Salary a/c - Reema (1500012) - Seema (1500012)	180000 180000
	510000		510000