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Capital balances of A and B were Rs 9,00,000 and 6,00,000 respectively on 1st April , 2022. Their partnership provided for the following:-
A) Interest on capital @10% p.a
B) A is entitled to a salary of Rs 5000 per month. During the year ending 31st March , 2023 they had earned net profit of Rs 1,5,000 before adjusting the above mentioned provisions. Prepare P&L Appropriation A/c as on 31st March , 2023.?
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Capital balances of A and B were Rs 9,00,000 and 6,00,000 respectively...
Calculation of Profit Sharing and P&L Appropriation Account

Step 1: Calculation of Interest on Capital
- A's capital balance on 1st April 2022 = Rs 9,00,000
- B's capital balance on 1st April 2022 = Rs 6,00,000
- Total capital = Rs 15,00,000
- Interest on capital @10% = Rs 1,50,000

Step 2: Calculation of A's Salary
- A's monthly salary = Rs 5000
- A's annual salary = Rs 60,000

Step 3: Calculation of Net Profit
- Net profit before adjustments = Rs 1,50,000

Step 4: Distribution of Profit
- Total available profit = Rs 1,50,000
- Interest on capital = Rs 1,50,000
- A's salary = Rs 60,000
- Remaining profit = Rs 30,000

Step 5: Preparation of P&L Appropriation Account
| Particulars | Amount (Rs) |
|---------------------|-------------|
| Net Profit | 1,50,000 |
| Interest on Capital | 1,50,000 |
| A's Salary | 60,000 |
| Remaining Profit | 30,000 |
| Total | 3,90,000 |

Explanation:
- The interest on capital is calculated based on the agreed rate of 10% on the total capital of both partners.
- A's salary is a fixed amount payable to A as per the partnership agreement.
- The net profit is distributed among partners after deducting interest on capital and A's salary.
- The remaining profit is available for distribution or retention in the business.
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Capital balances of A and B were Rs 9,00,000 and 6,00,000 respectively on 1st April , 2022. Their partnership provided for the following:-A) Interest on capital @10% p.aB) A is entitled to a salary of Rs 5000 per month. During the year ending 31st March , 2023 they had earned net profit of Rs 1,5,000 before adjusting the above mentioned provisions. Prepare P&L Appropriation A/c as on 31st March , 2023.?
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Capital balances of A and B were Rs 9,00,000 and 6,00,000 respectively on 1st April , 2022. Their partnership provided for the following:-A) Interest on capital @10% p.aB) A is entitled to a salary of Rs 5000 per month. During the year ending 31st March , 2023 they had earned net profit of Rs 1,5,000 before adjusting the above mentioned provisions. Prepare P&L Appropriation A/c as on 31st March , 2023.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Capital balances of A and B were Rs 9,00,000 and 6,00,000 respectively on 1st April , 2022. Their partnership provided for the following:-A) Interest on capital @10% p.aB) A is entitled to a salary of Rs 5000 per month. During the year ending 31st March , 2023 they had earned net profit of Rs 1,5,000 before adjusting the above mentioned provisions. Prepare P&L Appropriation A/c as on 31st March , 2023.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Capital balances of A and B were Rs 9,00,000 and 6,00,000 respectively on 1st April , 2022. Their partnership provided for the following:-A) Interest on capital @10% p.aB) A is entitled to a salary of Rs 5000 per month. During the year ending 31st March , 2023 they had earned net profit of Rs 1,5,000 before adjusting the above mentioned provisions. Prepare P&L Appropriation A/c as on 31st March , 2023.?.
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