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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.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.
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.
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?.
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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