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Sita and Gita are partners in a firm whose capital on 1st April, 2017 was * 60,000 and 50,000 respectively. They are allowed interest on capital @71% per annum. Sita gave 16,000 to the firm as loan on 1st Oct., 2017. Gita is entitled to get an annual salary of 8,000. The profit for the year ended 31st March, 2018 before making the above adjustments were 18,000. Prepare Profit & Loss Appropriation Account.?
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Sita and Gita are partners in a firm whose capital on 1st April, 2017 ...
And Loss Appropriation Account for the year ended 31st March, 2018.
Profit and Loss Appropriation Account for the year ended 31st March, 2018
Particulars Amount (Rs.) Amount (Rs.)
Profit before adjustments 18,000
Add: Interest on Sita's capital [60,000 x 71% x 6/12] 2,130
Add: Interest on Gita's capital [50,000 x 71% x 12/12] 35,500
Add: Interest on Sita's loan [16,000 x 71% x 6/12] 568
Less: Gita's salary 8,000
Net profit for the year 47,198
Less: Income tax (Assuming 30% tax rate) 14,160
Profit after tax 33,038
Appropriations:
Transfer to Sita's capital account 2,130
Transfer to Gita's capital account 27,038
Transfer to General Reserve 4,870
Total 33,038
Note:
- Interest on capital and loan is calculated based on the number of months each amount was used in the business.
- Income tax is calculated at a rate of 30% on the net profit after adjustments.
- The remaining profit after tax is appropriated to the partners' capital accounts and general reserve.
Profit and Loss Appropriation Account for the year ended 31st March, 2018
Particulars Amount (Rs.) Amount (Rs.)
Profit before adjustments 18,000
Add: Interest on Sita's capital [60,000 x 71% x 6/12] 2,130
Add: Interest on Gita's capital [50,000 x 71% x 12/12] 35,500
Add: Interest on Sita's loan [16,000 x 71% x 6/12] 568
Less: Gita's salary 8,000
Net profit for the year 47,198
Less: Income tax (Assuming 30% tax rate) 14,160
Profit after tax 33,038
Appropriations:
Transfer to Sita's capital account 2,130
Transfer to Gita's capital account 27,038
Transfer to General Reserve 4,870
Total 33,038
Note:
- Interest on capital and loan is calculated based on the number of months each amount was used in the business.
- Income tax is calculated at a rate of 30% on the net profit after adjustments.
- The remaining profit after tax is appropriated to the partners' capital accounts and general reserve.
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Sita and Gita are partners in a firm whose capital on 1st April, 2017 ...
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Sita and Gita are partners in a firm whose capital on 1st April, 2017 was * 60,000 and 50,000 respectively. They are allowed interest on capital @71% per annum. Sita gave 16,000 to the firm as loan on 1st Oct., 2017. Gita is entitled to get an annual salary of 8,000. The profit for the year ended 31st March, 2018 before making the above adjustments were 18,000. Prepare Profit & Loss Appropriation Account.?
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Sita and Gita are partners in a firm whose capital on 1st April, 2017 was * 60,000 and 50,000 respectively. They are allowed interest on capital @71% per annum. Sita gave 16,000 to the firm as loan on 1st Oct., 2017. Gita is entitled to get an annual salary of 8,000. The profit for the year ended 31st March, 2018 before making the above adjustments were 18,000. Prepare Profit & Loss Appropriation Account.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Sita and Gita are partners in a firm whose capital on 1st April, 2017 was * 60,000 and 50,000 respectively. They are allowed interest on capital @71% per annum. Sita gave 16,000 to the firm as loan on 1st Oct., 2017. Gita is entitled to get an annual salary of 8,000. The profit for the year ended 31st March, 2018 before making the above adjustments were 18,000. Prepare Profit & Loss Appropriation Account.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sita and Gita are partners in a firm whose capital on 1st April, 2017 was * 60,000 and 50,000 respectively. They are allowed interest on capital @71% per annum. Sita gave 16,000 to the firm as loan on 1st Oct., 2017. Gita is entitled to get an annual salary of 8,000. The profit for the year ended 31st March, 2018 before making the above adjustments were 18,000. Prepare Profit & Loss Appropriation Account.?.
Sita and Gita are partners in a firm whose capital on 1st April, 2017 was * 60,000 and 50,000 respectively. They are allowed interest on capital @71% per annum. Sita gave 16,000 to the firm as loan on 1st Oct., 2017. Gita is entitled to get an annual salary of 8,000. The profit for the year ended 31st March, 2018 before making the above adjustments were 18,000. Prepare Profit & Loss Appropriation Account.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Sita and Gita are partners in a firm whose capital on 1st April, 2017 was * 60,000 and 50,000 respectively. They are allowed interest on capital @71% per annum. Sita gave 16,000 to the firm as loan on 1st Oct., 2017. Gita is entitled to get an annual salary of 8,000. The profit for the year ended 31st March, 2018 before making the above adjustments were 18,000. Prepare Profit & Loss Appropriation Account.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sita and Gita are partners in a firm whose capital on 1st April, 2017 was * 60,000 and 50,000 respectively. They are allowed interest on capital @71% per annum. Sita gave 16,000 to the firm as loan on 1st Oct., 2017. Gita is entitled to get an annual salary of 8,000. The profit for the year ended 31st March, 2018 before making the above adjustments were 18,000. Prepare Profit & Loss Appropriation Account.?.
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