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Capital balances of Nesh and Tarl 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) Nesh is entitled to a salary of Rs 5000 per month. During the year ending 31st March , 2023 they had earned Net profit of Rs 15,000 before adjusting the above mentioned provisions. Prepare P&L appropriation A/c as on 31st March , 2023?
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Capital balances of Nesh and Tarl were Rs 9,00,000 and 6,00,000 respec...
<h2>P&L Appropriation Account as on 31st March, 2023</h2>
  1. Calculation of Nesh's Interest on Capital:

  2. Nesh's Capital Balance on 1st April, 2022 = Rs 9,00,000
    Nesh's Interest on Capital @10% = 9,00,000 * 10% = Rs 90,000
  3. Calculation of Tarl's Interest on Capital:

  4. Tarl's Capital Balance on 1st April, 2022 = Rs 6,00,000
    Tarl's Interest on Capital @10% = 6,00,000 * 10% = Rs 60,000
  5. Calculation of Nesh's Salary:

  6. Nesh's Salary for the year = Rs 5,000 * 12 months = Rs 60,000
  7. Calculation of Net Profit:

  8. Net Profit before adjustments = Rs 15,000
  9. P&L Appropriation Account:

  10. | Particulars | Amount (Rs) |
    |-----------------------|-------------|
    | Net Profit | 15,000 |
    | Add: Nesh's Interest on Capital | 90,000 |
    | Add: Tarl's Interest on Capital | 60,000 |
    | Add: Nesh's Salary | 60,000 |
    | Total | 2,25,000 |
    | | |
    | Less: Nesh's Salary | 60,000 |
    | Less: Net Profit Allocated | 15,000 |
    | Remaining Profit to be shared | 1,50,000 |
    | Nesh's Share | 75,000 |
    | Tarl's Share | 75,000 |
    | | |
    | Total | 2,25,000 |

This P&L Appropriation Account shows the allocation of Net Profit after making necessary adjustments for Nesh's Interest on Capital and Salary. The remaining profit is shared equally between Nesh and Tarl as per their capital balances. Nesh's and Tarl's Shares are Rs 75,000 each.
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Capital balances of Nesh and Tarl 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) Nesh is entitled to a salary of Rs 5000 per month. During the year ending 31st March , 2023 they had earned Net profit of Rs 15,000 before adjusting the above mentioned provisions. Prepare P&L appropriation A/c as on 31st March , 2023?
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Capital balances of Nesh and Tarl 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) Nesh is entitled to a salary of Rs 5000 per month. During the year ending 31st March , 2023 they had earned Net profit of Rs 15,000 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 Nesh and Tarl 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) Nesh is entitled to a salary of Rs 5000 per month. During the year ending 31st March , 2023 they had earned Net profit of Rs 15,000 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 Nesh and Tarl 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) Nesh is entitled to a salary of Rs 5000 per month. During the year ending 31st March , 2023 they had earned Net profit of Rs 15,000 before adjusting the above mentioned provisions. Prepare P&L appropriation A/c as on 31st March , 2023?.
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