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Chintoo and Montoo are partners without any agreement on 1st April, 2017 and they invested Capital 20,000 and 10,000 respectively. On 30th Nov., 2017, Chintoo advances to the firm 4,000 on loan. The Profit and Loss Account for the year 2017-18 shows profit of 4,000, but the partners are not agreed upon the question of interest and division of profit. Prepare Profit & Loss Appropriation Account.?
Most Upvoted Answer
Chintoo and Montoo are partners without any agreement on 1st April, 20...
And Loss Appropriation Account and show the distribution of profit assuming that:
1) Interest on Capital is allowed @ 6% per annum.
2) Interest on Loan is charged @ 10% per annum.
3) Profit is to be shared equally.
Profit and Loss Appropriation Account for the year ended 31st March 2018:
Particulars Amount ($) Amount ($)
Profit and Loss Account (Net Profit) 4,000
Add: Interest on Capital (Chintoo) @ 6% 1,200
Add: Interest on Capital (Montoo) @ 6% 600
Less: Interest on Loan (Chintoo) @ 10% 400
Net Profit available for appropriation 5,400
Distribution of Profit:
Particulars Amount ($) Amount ($)
Chintoo's Capital (20,000 + 6% interest) 21,200
Montoo's Capital (10,000 + 6% interest) 10,600
Chintoo's Loan (4,000 + 10% interest) 4,400
Profit to be shared equally (5,400/2) 2,700
Total 38,900
Chintoo's share of profit = 21,200 + 4,400 + 2,700 = $28,300
Montoo's share of profit = 10,600 + 2,700 = $13,300
1) Interest on Capital is allowed @ 6% per annum.
2) Interest on Loan is charged @ 10% per annum.
3) Profit is to be shared equally.
Profit and Loss Appropriation Account for the year ended 31st March 2018:
Particulars Amount ($) Amount ($)
Profit and Loss Account (Net Profit) 4,000
Add: Interest on Capital (Chintoo) @ 6% 1,200
Add: Interest on Capital (Montoo) @ 6% 600
Less: Interest on Loan (Chintoo) @ 10% 400
Net Profit available for appropriation 5,400
Distribution of Profit:
Particulars Amount ($) Amount ($)
Chintoo's Capital (20,000 + 6% interest) 21,200
Montoo's Capital (10,000 + 6% interest) 10,600
Chintoo's Loan (4,000 + 10% interest) 4,400
Profit to be shared equally (5,400/2) 2,700
Total 38,900
Chintoo's share of profit = 21,200 + 4,400 + 2,700 = $28,300
Montoo's share of profit = 10,600 + 2,700 = $13,300
Community Answer
Chintoo and Montoo are partners without any agreement on 1st April, 20...
Deed is silent therefore no interest on capital and no interest on drawings.
Interest on loan = 6% of amount = 6/100 × 4000 = 240₹
Net profit = 4000-240 = 3760 ₹
divide the profit equally between chintoo and montoo = 3760/2 = 1880 ₹
Montoo capital balance = 10000+1880= 11880₹
Chintoo capital balance = 20000+1880+240 = 22120₹
Interest on loan = 6% of amount = 6/100 × 4000 = 240₹
Net profit = 4000-240 = 3760 ₹
divide the profit equally between chintoo and montoo = 3760/2 = 1880 ₹
Montoo capital balance = 10000+1880= 11880₹
Chintoo capital balance = 20000+1880+240 = 22120₹
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Chintoo and Montoo are partners without any agreement on 1st April, 2017 and they invested Capital 20,000 and 10,000 respectively. On 30th Nov., 2017, Chintoo advances to the firm 4,000 on loan. The Profit and Loss Account for the year 2017-18 shows profit of 4,000, but the partners are not agreed upon the question of interest and division of profit. Prepare Profit & Loss Appropriation Account.?
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Chintoo and Montoo are partners without any agreement on 1st April, 2017 and they invested Capital 20,000 and 10,000 respectively. On 30th Nov., 2017, Chintoo advances to the firm 4,000 on loan. The Profit and Loss Account for the year 2017-18 shows profit of 4,000, but the partners are not agreed upon the question of interest and division of profit. 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 Chintoo and Montoo are partners without any agreement on 1st April, 2017 and they invested Capital 20,000 and 10,000 respectively. On 30th Nov., 2017, Chintoo advances to the firm 4,000 on loan. The Profit and Loss Account for the year 2017-18 shows profit of 4,000, but the partners are not agreed upon the question of interest and division of profit. Prepare Profit & Loss Appropriation Account.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Chintoo and Montoo are partners without any agreement on 1st April, 2017 and they invested Capital 20,000 and 10,000 respectively. On 30th Nov., 2017, Chintoo advances to the firm 4,000 on loan. The Profit and Loss Account for the year 2017-18 shows profit of 4,000, but the partners are not agreed upon the question of interest and division of profit. Prepare Profit & Loss Appropriation Account.?.
Chintoo and Montoo are partners without any agreement on 1st April, 2017 and they invested Capital 20,000 and 10,000 respectively. On 30th Nov., 2017, Chintoo advances to the firm 4,000 on loan. The Profit and Loss Account for the year 2017-18 shows profit of 4,000, but the partners are not agreed upon the question of interest and division of profit. 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 Chintoo and Montoo are partners without any agreement on 1st April, 2017 and they invested Capital 20,000 and 10,000 respectively. On 30th Nov., 2017, Chintoo advances to the firm 4,000 on loan. The Profit and Loss Account for the year 2017-18 shows profit of 4,000, but the partners are not agreed upon the question of interest and division of profit. Prepare Profit & Loss Appropriation Account.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Chintoo and Montoo are partners without any agreement on 1st April, 2017 and they invested Capital 20,000 and 10,000 respectively. On 30th Nov., 2017, Chintoo advances to the firm 4,000 on loan. The Profit and Loss Account for the year 2017-18 shows profit of 4,000, but the partners are not agreed upon the question of interest and division of profit. Prepare Profit & Loss Appropriation Account.?.
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Chintoo and Montoo are partners without any agreement on 1st April, 2017 and they invested Capital 20,000 and 10,000 respectively. On 30th Nov., 2017, Chintoo advances to the firm 4,000 on loan. The Profit and Loss Account for the year 2017-18 shows profit of 4,000, but the partners are not agreed upon the question of interest and division of profit. Prepare Profit & Loss Appropriation Account.?, a detailed solution for Chintoo and Montoo are partners without any agreement on 1st April, 2017 and they invested Capital 20,000 and 10,000 respectively. On 30th Nov., 2017, Chintoo advances to the firm 4,000 on loan. The Profit and Loss Account for the year 2017-18 shows profit of 4,000, but the partners are not agreed upon the question of interest and division of profit. Prepare Profit & Loss Appropriation Account.? has been provided alongside types of Chintoo and Montoo are partners without any agreement on 1st April, 2017 and they invested Capital 20,000 and 10,000 respectively. On 30th Nov., 2017, Chintoo advances to the firm 4,000 on loan. The Profit and Loss Account for the year 2017-18 shows profit of 4,000, but the partners are not agreed upon the question of interest and division of profit. Prepare Profit & Loss Appropriation Account.? theory, EduRev gives you an
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