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x y z are partners in a firm with a respective ccapital of Rs 50000 rs 30000 rs 20000 . According to partnership deed each partner is entitled to interest on capital @5% and salary of rs 1000. p.a . of. Net divisible. profit the profit and loss account for the year ended disclosed a net profit of rs 25000 prepare profit and loss account
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x y z are partners in a firm with a respective ccapital of Rs 50000 rs...
Profit and Loss Appropriation Account
The Profit and Loss Appropriation Account is an account used to distribute the profits of a partnership among its partners. It is prepared after the Profit and Loss Account has been prepared and shows how the profits have been distributed among the partners.
Heading 1: Calculation of Net Profit
- The Profit and Loss Account for the year ended shows a net profit of Rs 25,000.
Heading 2: Calculation of Interest on Capital
- X is entitled to interest on capital @ 5% on Rs 50,000 = Rs 2,500
- Y is entitled to interest on capital @ 5% on Rs 30,000 = Rs 1,500
- Z is entitled to interest on capital @ 5% on Rs 20,000 = Rs 1,000
Heading 3: Calculation of Salary
- Each partner is entitled to a salary of Rs 1,000 p.a.
- Total salary for all three partners = Rs 3,000
Heading 4: Calculation of Distributable Profit
- Net profit = Rs 25,000
- Interest on capital = Rs 5,000 (Rs 2,500 + Rs 1,500 + Rs 1,000)
- Total salary = Rs 3,000
- Distributable profit = Rs 17,000 (Rs 25,000 - Rs 5,000 - Rs 3,000)
Heading 5: Distribution of Profit
- X's share of profit = (Rs 50,000 / Rs 1,00,000) x Rs 17,000 = Rs 8,500
- Y's share of profit = (Rs 30,000 / Rs 1,00,000) x Rs 17,000 = Rs 5,100
- Z's share of profit = (Rs 20,000 / Rs 1,00,000) x Rs 17,000 = Rs 3,400
Heading 6: Retained Profit
- The remaining profit of Rs 17,000 can be distributed among the partners as per their profit sharing ratio or can be retained in the business for future use.
Conclusion
The Profit and Loss Appropriation Account helps in distributing the profits among the partners as per their entitlements and ensures that the partners are fairly compensated for their investments and efforts in the business.
The Profit and Loss Appropriation Account is an account used to distribute the profits of a partnership among its partners. It is prepared after the Profit and Loss Account has been prepared and shows how the profits have been distributed among the partners.
Heading 1: Calculation of Net Profit
- The Profit and Loss Account for the year ended shows a net profit of Rs 25,000.
Heading 2: Calculation of Interest on Capital
- X is entitled to interest on capital @ 5% on Rs 50,000 = Rs 2,500
- Y is entitled to interest on capital @ 5% on Rs 30,000 = Rs 1,500
- Z is entitled to interest on capital @ 5% on Rs 20,000 = Rs 1,000
Heading 3: Calculation of Salary
- Each partner is entitled to a salary of Rs 1,000 p.a.
- Total salary for all three partners = Rs 3,000
Heading 4: Calculation of Distributable Profit
- Net profit = Rs 25,000
- Interest on capital = Rs 5,000 (Rs 2,500 + Rs 1,500 + Rs 1,000)
- Total salary = Rs 3,000
- Distributable profit = Rs 17,000 (Rs 25,000 - Rs 5,000 - Rs 3,000)
Heading 5: Distribution of Profit
- X's share of profit = (Rs 50,000 / Rs 1,00,000) x Rs 17,000 = Rs 8,500
- Y's share of profit = (Rs 30,000 / Rs 1,00,000) x Rs 17,000 = Rs 5,100
- Z's share of profit = (Rs 20,000 / Rs 1,00,000) x Rs 17,000 = Rs 3,400
Heading 6: Retained Profit
- The remaining profit of Rs 17,000 can be distributed among the partners as per their profit sharing ratio or can be retained in the business for future use.
Conclusion
The Profit and Loss Appropriation Account helps in distributing the profits among the partners as per their entitlements and ensures that the partners are fairly compensated for their investments and efforts in the business.
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x y z are partners in a firm with a respective ccapital of Rs 50000 rs 30000 rs 20000 . According to partnership deed each partner is entitled to interest on capital @5% and salary of rs 1000. p.a . of. Net divisible. profit the profit and loss account for the year ended disclosed a net profit of rs 25000 prepare profit and loss account Related: Profit and Loss Appropriation Account - Class 12, Accountancy?
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x y z are partners in a firm with a respective ccapital of Rs 50000 rs 30000 rs 20000 . According to partnership deed each partner is entitled to interest on capital @5% and salary of rs 1000. p.a . of. Net divisible. profit the profit and loss account for the year ended disclosed a net profit of rs 25000 prepare profit and loss account Related: Profit and Loss Appropriation Account - Class 12, Accountancy? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about x y z are partners in a firm with a respective ccapital of Rs 50000 rs 30000 rs 20000 . According to partnership deed each partner is entitled to interest on capital @5% and salary of rs 1000. p.a . of. Net divisible. profit the profit and loss account for the year ended disclosed a net profit of rs 25000 prepare profit and loss account Related: Profit and Loss Appropriation Account - Class 12, Accountancy? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for x y z are partners in a firm with a respective ccapital of Rs 50000 rs 30000 rs 20000 . According to partnership deed each partner is entitled to interest on capital @5% and salary of rs 1000. p.a . of. Net divisible. profit the profit and loss account for the year ended disclosed a net profit of rs 25000 prepare profit and loss account Related: Profit and Loss Appropriation Account - Class 12, Accountancy?.
x y z are partners in a firm with a respective ccapital of Rs 50000 rs 30000 rs 20000 . According to partnership deed each partner is entitled to interest on capital @5% and salary of rs 1000. p.a . of. Net divisible. profit the profit and loss account for the year ended disclosed a net profit of rs 25000 prepare profit and loss account Related: Profit and Loss Appropriation Account - Class 12, Accountancy? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about x y z are partners in a firm with a respective ccapital of Rs 50000 rs 30000 rs 20000 . According to partnership deed each partner is entitled to interest on capital @5% and salary of rs 1000. p.a . of. Net divisible. profit the profit and loss account for the year ended disclosed a net profit of rs 25000 prepare profit and loss account Related: Profit and Loss Appropriation Account - Class 12, Accountancy? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for x y z are partners in a firm with a respective ccapital of Rs 50000 rs 30000 rs 20000 . According to partnership deed each partner is entitled to interest on capital @5% and salary of rs 1000. p.a . of. Net divisible. profit the profit and loss account for the year ended disclosed a net profit of rs 25000 prepare profit and loss account Related: Profit and Loss Appropriation Account - Class 12, Accountancy?.
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