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Amna, Brij and Chintu entered into partnership on 1st July, 2022 to share Profits and Losses in the ratio of 5:3:2. Amna personally guaranteed that Chintu’s Share of profits after charging interest on capital @ 8% p.a. would not be less than ₹ 1, 60,000. p.a. The capital contributed were; Amna- ₹ 4, 00,000; Brij- ₹ 3, 00,000 and Chintu- ₹ 2, 00,000. Profit for the year ended on 31st March, 2023 was ₹ 4, 74,000. Prepare Profit and Loss Appropriation?
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Amna, Brij and Chintu entered into partnership on 1st July, 2022 to sh...
Profit and Loss Appropriation


Calculation of Interest on Capital



  • Chintu's capital = ₹ 2,00,000

  • Interest on capital @8% p.a. = 8/100 x ₹ 2,00,000 = ₹ 16,000



Calculation of Profit before Interest and Salary



  • Amna's share = 5/10 x ₹ 4,74,000 = ₹ 2,37,000

  • Brij's share = 3/10 x ₹ 4,74,000 = ₹ 1,42,200

  • Chintu's share = 2/10 x ₹ 4,74,000 = ₹ 94,800

  • Total share = ₹ 4,74,000



Adjustment for Interest on Capital



  • Chintu's share of profit = ₹ 94,800

  • Interest on capital = ₹ 16,000

  • Chintu's actual share of profit = ₹ 78,800



Calculation of Salary to Partners



  • Amna = ₹ 10,000 per month



Net Profit and Loss Appropriation



  • Amna's share = ₹ 2,37,000

  • Brij's share = ₹ 1,42,200

  • Chintu's share = ₹ 78,800

  • Salary to Amna = ₹ 1,20,000

  • Remaining Profit = ₹ 94,000



Final Profit and Loss Appropriation



  • Amna's share = ₹ 2,37,000 + ₹ 1,20,000 = ₹ 3,57,000

  • Brij's share = ₹ 1,42,200

  • Chintu's share = ₹ 1,60,000

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Amna, Brij and Chintu entered into partnership on 1st July, 2022 to share Profits and Losses in the ratio of 5:3:2. Amna personally guaranteed that Chintu’s Share of profits after charging interest on capital @ 8% p.a. would not be less than ₹ 1, 60,000. p.a. The capital contributed were; Amna- ₹ 4, 00,000; Brij- ₹ 3, 00,000 and Chintu- ₹ 2, 00,000. Profit for the year ended on 31st March, 2023 was ₹ 4, 74,000. Prepare Profit and Loss Appropriation?
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Amna, Brij and Chintu entered into partnership on 1st July, 2022 to share Profits and Losses in the ratio of 5:3:2. Amna personally guaranteed that Chintu’s Share of profits after charging interest on capital @ 8% p.a. would not be less than ₹ 1, 60,000. p.a. The capital contributed were; Amna- ₹ 4, 00,000; Brij- ₹ 3, 00,000 and Chintu- ₹ 2, 00,000. Profit for the year ended on 31st March, 2023 was ₹ 4, 74,000. Prepare Profit and Loss Appropriation? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Amna, Brij and Chintu entered into partnership on 1st July, 2022 to share Profits and Losses in the ratio of 5:3:2. Amna personally guaranteed that Chintu’s Share of profits after charging interest on capital @ 8% p.a. would not be less than ₹ 1, 60,000. p.a. The capital contributed were; Amna- ₹ 4, 00,000; Brij- ₹ 3, 00,000 and Chintu- ₹ 2, 00,000. Profit for the year ended on 31st March, 2023 was ₹ 4, 74,000. Prepare Profit and Loss Appropriation? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Amna, Brij and Chintu entered into partnership on 1st July, 2022 to share Profits and Losses in the ratio of 5:3:2. Amna personally guaranteed that Chintu’s Share of profits after charging interest on capital @ 8% p.a. would not be less than ₹ 1, 60,000. p.a. The capital contributed were; Amna- ₹ 4, 00,000; Brij- ₹ 3, 00,000 and Chintu- ₹ 2, 00,000. Profit for the year ended on 31st March, 2023 was ₹ 4, 74,000. Prepare Profit and Loss Appropriation?.
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