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P and s stared a partnership from 1 Jun 2016 with a capital of ₹10000 respectivly on 1 march in the firm 1 July 2016 with a capital of ₹15000 on that day p and s introduced additional capital on 6000 and 5000 respectively profit loss are distributed in capital ratio.the profits of the year 2016 were ₹ 29800 prepare profit & loss appropation a/c by giving detaild calculation?
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P and s stared a partnership from 1 Jun 2016 with a capital of ₹10000 ...
And loss appropriation account and partners' capital accounts for the year ended 31st December 2016.
Profit and Loss Appropriation Account for the year ended 31st December 2016
Particulars Amount (₹)
Profit for the year 29,800
Less: Interest on capital - P @ 10% 1,000
Less: Interest on capital - S @ 10% 750
Less: Salary to P 5,000
Less: Salary to S 4,000
Net profit available for appropriation 19,050
Less: Transfer to General Reserve 1,000
Less: Transfer to P's Capital Account 8,050
Less: Transfer to S's Capital Account 6,000
Balance carried forward to next year 4,000
Note: The interest on capital for P and S is calculated as follows:
P's interest on capital = ₹10,000 × 10% = ₹1,000
S's interest on capital = (₹15,000 + ₹5,000) × 10% = ₹2,000
However, S's salary is also deducted from the profit, so his interest on capital is reduced to ₹750 (₹2,000 - ₹1,250).
Partners' Capital Accounts as on 31st December 2016
Particulars P S
Opening capital 10,000 15,000
Add: Additional capital introduced on 1st July 2016 6,000 5,000
Add: Share of profit for the year 8,050 6,000
Less: Transfer from P/L Appropriation Account 8,050 6,000
Closing capital 16,000 20,000
Note: The share of profit for P and S is calculated according to their capital ratio of 2:3. Therefore, P's share of profit = ₹19,050 × 2/5 = ₹7,620 and S's share of profit = ₹19,050 × 3/5 = ₹11,430.
Profit and Loss Appropriation Account for the year ended 31st December 2016
Particulars Amount (₹)
Profit for the year 29,800
Less: Interest on capital - P @ 10% 1,000
Less: Interest on capital - S @ 10% 750
Less: Salary to P 5,000
Less: Salary to S 4,000
Net profit available for appropriation 19,050
Less: Transfer to General Reserve 1,000
Less: Transfer to P's Capital Account 8,050
Less: Transfer to S's Capital Account 6,000
Balance carried forward to next year 4,000
Note: The interest on capital for P and S is calculated as follows:
P's interest on capital = ₹10,000 × 10% = ₹1,000
S's interest on capital = (₹15,000 + ₹5,000) × 10% = ₹2,000
However, S's salary is also deducted from the profit, so his interest on capital is reduced to ₹750 (₹2,000 - ₹1,250).
Partners' Capital Accounts as on 31st December 2016
Particulars P S
Opening capital 10,000 15,000
Add: Additional capital introduced on 1st July 2016 6,000 5,000
Add: Share of profit for the year 8,050 6,000
Less: Transfer from P/L Appropriation Account 8,050 6,000
Closing capital 16,000 20,000
Note: The share of profit for P and S is calculated according to their capital ratio of 2:3. Therefore, P's share of profit = ₹19,050 × 2/5 = ₹7,620 and S's share of profit = ₹19,050 × 3/5 = ₹11,430.
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P and s stared a partnership from 1 Jun 2016 with a capital of ₹10000 respectivly on 1 march in the firm 1 July 2016 with a capital of ₹15000 on that day p and s introduced additional capital on 6000 and 5000 respectively profit loss are distributed in capital ratio.the profits of the year 2016 were ₹ 29800 prepare profit & loss appropation a/c by giving detaild calculation?
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P and s stared a partnership from 1 Jun 2016 with a capital of ₹10000 respectivly on 1 march in the firm 1 July 2016 with a capital of ₹15000 on that day p and s introduced additional capital on 6000 and 5000 respectively profit loss are distributed in capital ratio.the profits of the year 2016 were ₹ 29800 prepare profit & loss appropation a/c by giving detaild calculation? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about P and s stared a partnership from 1 Jun 2016 with a capital of ₹10000 respectivly on 1 march in the firm 1 July 2016 with a capital of ₹15000 on that day p and s introduced additional capital on 6000 and 5000 respectively profit loss are distributed in capital ratio.the profits of the year 2016 were ₹ 29800 prepare profit & loss appropation a/c by giving detaild calculation? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for P and s stared a partnership from 1 Jun 2016 with a capital of ₹10000 respectivly on 1 march in the firm 1 July 2016 with a capital of ₹15000 on that day p and s introduced additional capital on 6000 and 5000 respectively profit loss are distributed in capital ratio.the profits of the year 2016 were ₹ 29800 prepare profit & loss appropation a/c by giving detaild calculation?.
P and s stared a partnership from 1 Jun 2016 with a capital of ₹10000 respectivly on 1 march in the firm 1 July 2016 with a capital of ₹15000 on that day p and s introduced additional capital on 6000 and 5000 respectively profit loss are distributed in capital ratio.the profits of the year 2016 were ₹ 29800 prepare profit & loss appropation a/c by giving detaild calculation? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about P and s stared a partnership from 1 Jun 2016 with a capital of ₹10000 respectivly on 1 march in the firm 1 July 2016 with a capital of ₹15000 on that day p and s introduced additional capital on 6000 and 5000 respectively profit loss are distributed in capital ratio.the profits of the year 2016 were ₹ 29800 prepare profit & loss appropation a/c by giving detaild calculation? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for P and s stared a partnership from 1 Jun 2016 with a capital of ₹10000 respectivly on 1 march in the firm 1 July 2016 with a capital of ₹15000 on that day p and s introduced additional capital on 6000 and 5000 respectively profit loss are distributed in capital ratio.the profits of the year 2016 were ₹ 29800 prepare profit & loss appropation a/c by giving detaild calculation?.
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P and s stared a partnership from 1 Jun 2016 with a capital of ₹10000 respectivly on 1 march in the firm 1 July 2016 with a capital of ₹15000 on that day p and s introduced additional capital on 6000 and 5000 respectively profit loss are distributed in capital ratio.the profits of the year 2016 were ₹ 29800 prepare profit & loss appropation a/c by giving detaild calculation?, a detailed solution for P and s stared a partnership from 1 Jun 2016 with a capital of ₹10000 respectivly on 1 march in the firm 1 July 2016 with a capital of ₹15000 on that day p and s introduced additional capital on 6000 and 5000 respectively profit loss are distributed in capital ratio.the profits of the year 2016 were ₹ 29800 prepare profit & loss appropation a/c by giving detaild calculation? has been provided alongside types of P and s stared a partnership from 1 Jun 2016 with a capital of ₹10000 respectivly on 1 march in the firm 1 July 2016 with a capital of ₹15000 on that day p and s introduced additional capital on 6000 and 5000 respectively profit loss are distributed in capital ratio.the profits of the year 2016 were ₹ 29800 prepare profit & loss appropation a/c by giving detaild calculation? theory, EduRev gives you an
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