Profit and Loss Appropriation Account for the year ended March 31, 2018 |
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Dr. |
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|
Cr. |
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Particulars |
Amount Rs |
Particulars |
Amount Rs |
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Interest on Capital A/c: |
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Profit and Loss A/c (4,61,000 – 1,500) |
4,59,500 |
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X |
24,000 |
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Interest on Drawings A/c: |
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Y |
18,000 |
42,000 |
X |
5,000 |
|
|
X’s Capital A/c (Commission) (3,50,0005%) |
17,500 |
Y |
6,250 |
11,250 |
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Salary: |
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|
|
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X |
60,000 |
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|
|
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Y |
90,000 |
1,50,000 |
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Reserve (WN 1) |
50,000 |
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|
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Profit transferred to: |
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|
|
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X’s Capital A/c |
1,18,125 |
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|
|
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Y’s Capital A/c |
93,125 |
2,11,250 |
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|
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|
4,70,750 |
|
4,70,750 |
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Partners’ Capital Accounts |
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Dr. Cr. |
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Particulars |
X |
Y |
Particulars |
X |
Y |
|
Drawings A/c |
1,00,000 |
1,25,000 |
Balance b/d |
2,00,000 |
1,50,000 |
|
Interest on Drawings |
5,000 |
6,250 |
Interest on Capital A/c |
24,000 |
18,000 |
|
|
|
|
Salary A/c |
60,000 |
90,000 |
|
|
|
|
Commission A/c |
17,500 |
|
|
Balance c/d |
3,14,625 |
2,19,875 |
P/L Appropriation A/c |
1,18,125 |
93,125 |
|
|
4,19,625 |
3,51,125 |
|
4,19,625 |
3,51,125 |
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|
|
|
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Working Notes:
WN1: Calculation of Reserve
Profit before charging Interest on Drawings but after making appropriations
WN2: Division of Profit
Partners |
Up to Rs 1,75,000 |
Rs 36,250 (Above Rs 1,75,000) |
Total |
X |
1,00,000 |
18,125 |
1,18,125 |
Y |
75,000 |
18,125 |
93,125 |