Deepanshu Himanshu and Pulkit are partners sharing profit and loss and...
**Profit and Loss Appropriation Account for the year ending 31st March 2019**
**1. Calculation of Profit/Loss**
- Opening Capital:
- Himanshu: ₹90,000
- Pulkit: ₹50,000
- Current Account Opening Balance: ₹15,000
- Drawing:
- Himanshu: ₹25,520
- Pulkit: ₹32,500
- Closing Capital:
- Himanshu: ₹? (to be calculated)
- Pulkit: ₹? (to be calculated)
- Interest on Capital:
- Himanshu: 10% p.a.
- Pulkit: 12% p.a.
**2. Calculation of Capital Balance**
- Himanshu's Capital:
- Opening Capital: ₹90,000
- Add: Interest on Capital (10%): ₹(90,000 * 10%)
- Less: Drawings: ₹25,520
- Closing Capital: ₹?
- Pulkit's Capital:
- Opening Capital: ₹50,000
- Add: Interest on Capital (12%): ₹(50,000 * 12%)
- Less: Drawings: ₹32,500
- Closing Capital: ₹?
**3. Calculation of Himanshu's Capital**
- Opening Capital: ₹90,000
- Add: Interest on Capital (10%): ₹(90,000 * 10%)
- Less: Drawings: ₹25,520
- Closing Capital: ₹(90,000 + (90,000 * 10%) - 25,520)
**4. Calculation of Pulkit's Capital**
- Opening Capital: ₹50,000
- Add: Interest on Capital (12%): ₹(50,000 * 12%)
- Less: Drawings: ₹32,500
- Closing Capital: ₹(50,000 + (50,000 * 12%) - 32,500)
**5. Profit/Loss Distribution**
- Calculate the total profit/loss for the year:
- Profit = Closing Capital (Himanshu) - Opening Capital (Himanshu) + Closing Capital (Pulkit) - Opening Capital (Pulkit)
- Calculate the ratio of profit/loss distribution:
- Himanshu's Share = (Closing Capital (Himanshu) - Opening Capital (Himanshu)) / Profit * 100
- Pulkit's Share = (Closing Capital (Pulkit) - Opening Capital (Pulkit)) / Profit * 100
**6. Preparation of Profit and Loss Appropriation Account**
- Profit and Loss Appropriation Account for the year ending 31st March 2019:
| Particulars | Amount (₹) |
|-------------|------------|
| Profit and Loss Brought Forward | 0 |
| Add: Net Profit for the year | Profit |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Total | Profit |
- Allocate the profit/loss as per the agreed ratio.
**Note: The exact calculations for closing capitals, profit/
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