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P nd q r partners in a firm sharing profits nd losses in ratio 2:3.thier fixed capital as on 1st april,2018 were rs 600000 and rs800000 respectively.as per partnership deed both partners r 2 get monthly salary of rs25000 each nd interest on capital@8percent p.a .they r 2 be charged interest on drawings@10%p.a . drawings during the year ended 31/3/19 were P:rs10000p.m and QRs120000 during the year. Firm incurred loss of Rs100000 during the year before above adjustment. prepare p/l appropriation?
Most Upvoted Answer
P nd q r partners in a firm sharing profits nd losses in ratio 2:3.thi...
Profit and Loss Appropriation for P and Q Firm

Calculation of Interest on Capital
- P's interest on capital = 600000 * 8% = Rs 48000
- Q's interest on capital = 800000 * 8% = Rs 64000

Calculation of Salary
- P's salary = Rs 25000 * 12 = Rs 300000
- Q's salary = Rs 25000 * 12 = Rs 300000

Calculation of Interest on Drawings
- P's interest on drawings = Rs 10000 * 12 * 10% = Rs 12000
- Q's interest on drawings = Rs 120000 * 10% = Rs 12000

Calculation of Profit or Loss
- Total income = Rs 48000 + Rs 64000 + Rs 300000 + Rs 300000 = Rs 712000
- Total expenses = Rs 12000 + Rs 12000 + Rs 100000 = Rs 124000
- Net profit or loss = Rs 712000 - Rs 124000 = Rs 588000 (Profit)

P/L Appropriation Account
Particulars Amount (Rs) Amount (Rs)
Net Profit 588000
Less: Salary P = 300000
Q = 300000 600000
Less: Interest on Drawings P = 12000
Q = 12000 24000
Net Profit after adjustment 562000
Less: Interest on Capital P = 48000
Q = 64000 112000
Balance carried down to Balance Sheet 450000 562000

Explanation:
- The partnership firm has two partners, P and Q, sharing profits and losses in the ratio of 2:3.
- Their fixed capital as on 1st April 2018 was Rs 600000 and Rs 800000 respectively.
- As per the partnership deed, both partners are entitled to a monthly salary of Rs 25000 each and interest on capital at the rate of 8% p.a.
- They are also charged interest on drawings at the rate of 10% p.a.
- The firm incurred a loss of Rs 100000 during the year before the above adjustments.
- The calculation of interest on capital, salary, and interest on drawings is done based on the given information in the question.
- The total income and expenses are calculated, and the net profit or loss is derived.
- The P/L Appropriation account is prepared, and the net profit is adjusted for salary, interest on drawings, and interest on capital.
- The balance carried down to the balance sheet is Rs 450000.
Community Answer
P nd q r partners in a firm sharing profits nd losses in ratio 2:3.thi...
Ashok, Bhim and Chetan were partners in a firm sharing profits in the ratio of 3:2:1. Their balance sheet as on 31st March 2019 was as follows:

Liabilities

Rs.

Assets

Rs.

Creditors

Bills Payable

General reserves

Capitals:

Ashok

Bhim

Chetan

100,000

40,000

60,000


200,000

100,000

50,000

Land

Building

Plant

Stock

Debtors

Bank


100,000

100,000

200,000

80,000

60,000

10,000









Ashok, Bhim and Chetan decided to share the future profits equally w.e.f. 1st April 2019, for this, it was agreed that:

Goodwill of the firm is valued at Rs. 300,000.

Land is revalued at Rs. 160,000 and building be depreciated by 6%.

Creditors of Rs. 12,000 were not likely to be claimed and hence, be written off.

Prepare revaluation account, partner’s capital account and balance sheet of the reconstituted firm.
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P nd q r partners in a firm sharing profits nd losses in ratio 2:3.thier fixed capital as on 1st april,2018 were rs 600000 and rs800000 respectively.as per partnership deed both partners r 2 get monthly salary of rs25000 each nd interest on capital@8percent p.a .they r 2 be charged interest on drawings@10%p.a . drawings during the year ended 31/3/19 were P:rs10000p.m and QRs120000 during the year. Firm incurred loss of Rs100000 during the year before above adjustment. prepare p/l appropriation?
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P nd q r partners in a firm sharing profits nd losses in ratio 2:3.thier fixed capital as on 1st april,2018 were rs 600000 and rs800000 respectively.as per partnership deed both partners r 2 get monthly salary of rs25000 each nd interest on capital@8percent p.a .they r 2 be charged interest on drawings@10%p.a . drawings during the year ended 31/3/19 were P:rs10000p.m and QRs120000 during the year. Firm incurred loss of Rs100000 during the year before above adjustment. prepare p/l appropriation? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about P nd q r partners in a firm sharing profits nd losses in ratio 2:3.thier fixed capital as on 1st april,2018 were rs 600000 and rs800000 respectively.as per partnership deed both partners r 2 get monthly salary of rs25000 each nd interest on capital@8percent p.a .they r 2 be charged interest on drawings@10%p.a . drawings during the year ended 31/3/19 were P:rs10000p.m and QRs120000 during the year. Firm incurred loss of Rs100000 during the year before above adjustment. prepare p/l appropriation? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for P nd q r partners in a firm sharing profits nd losses in ratio 2:3.thier fixed capital as on 1st april,2018 were rs 600000 and rs800000 respectively.as per partnership deed both partners r 2 get monthly salary of rs25000 each nd interest on capital@8percent p.a .they r 2 be charged interest on drawings@10%p.a . drawings during the year ended 31/3/19 were P:rs10000p.m and QRs120000 during the year. Firm incurred loss of Rs100000 during the year before above adjustment. prepare p/l appropriation?.
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