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Jatin and Parekh were partners sharing P&L in the ratio of 3:2 Their Capital balances is on 1st April 2022 were 4,50,000 each. During the Year they had withdrawn Rs 40,000 and 30,000 Respectively.
Their Partnership Deed provides The following:-
A) Interest on Capital @10% p.a
B) Interest on Drawings @6% p.a
C) Jatin is entitled to a Salary of Rs 14,000 per month.
D) Parekh is entitled to a half yearly rent of Rs 25,000.
During the year ending 31st March 2023 they had earned a net profit of Rs 15,48,700 before adjusting the above mentioned provisions , Prepare P&L Appropriation A/C as on 31st March , 2023.?
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Jatin and Parekh were partners sharing P&L in the ratio of 3:2 Their C...
Calculation of P&L Appropriation A/C

Step 1: Calculation of Interest on Capital
- Jatin's Interest on Capital: 450,000 * 10% = 45,000
- Parekh's Interest on Capital: 450,000 * 10% = 45,000

Step 2: Calculation of Interest on Drawings
- Jatin's Interest on Drawings: 40,000 * 6% = 2,400
- Parekh's Interest on Drawings: 30,000 * 6% = 1,800

Step 3: Calculation of Salary and Rent
- Jatin's Salary: 14,000 * 12 = 1,68,000
- Parekh's Rent: 25,000 * 2 = 50,000

Step 4: Allocation of Net Profit
- Total Net Profit: 15,48,700
- Total Appropriation: (45,000 + 45,000 + 2,400 + 1,800 + 1,68,000 + 50,000) = 3,12,200
- Remaining Profit for Distribution = 15,48,700 - 3,12,200 = 12,36,500

Step 5: Distribution of Profit
- Jatin's Share: (3/5) * 12,36,500 = 7,41,900
- Parekh's Share: (2/5) * 12,36,500 = 4,94,600

Step 6: Preparation of P&L Appropriation A/C
- Interest on Capital:
- Jatin: 45,000
- Parekh: 45,000
- Interest on Drawings:
- Jatin: 2,400
- Parekh: 1,800
- Salary and Rent:
- Jatin: 1,68,000
- Parekh: 50,000
- Distribution of Net Profit:
- Jatin: 7,41,900
- Parekh: 4,94,600
This is how the P&L Appropriation A/C will be prepared as on 31st March 2023.
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Jatin and Parekh were partners sharing P&L in the ratio of 3:2 Their Capital balances is on 1st April 2022 were 4,50,000 each. During the Year they had withdrawn Rs 40,000 and 30,000 Respectively.Their Partnership Deed provides The following:-A) Interest on Capital @10% p.aB) Interest on Drawings @6% p.aC) Jatin is entitled to a Salary of Rs 14,000 per month.D) Parekh is entitled to a half yearly rent of Rs 25,000.During the year ending 31st March 2023 they had earned a net profit of Rs 15,48,700 before adjusting the above mentioned provisions , Prepare P&L Appropriation A/C as on 31st March , 2023.?
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Jatin and Parekh were partners sharing P&L in the ratio of 3:2 Their Capital balances is on 1st April 2022 were 4,50,000 each. During the Year they had withdrawn Rs 40,000 and 30,000 Respectively.Their Partnership Deed provides The following:-A) Interest on Capital @10% p.aB) Interest on Drawings @6% p.aC) Jatin is entitled to a Salary of Rs 14,000 per month.D) Parekh is entitled to a half yearly rent of Rs 25,000.During the year ending 31st March 2023 they had earned a net profit of Rs 15,48,700 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 Jatin and Parekh were partners sharing P&L in the ratio of 3:2 Their Capital balances is on 1st April 2022 were 4,50,000 each. During the Year they had withdrawn Rs 40,000 and 30,000 Respectively.Their Partnership Deed provides The following:-A) Interest on Capital @10% p.aB) Interest on Drawings @6% p.aC) Jatin is entitled to a Salary of Rs 14,000 per month.D) Parekh is entitled to a half yearly rent of Rs 25,000.During the year ending 31st March 2023 they had earned a net profit of Rs 15,48,700 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 Jatin and Parekh were partners sharing P&L in the ratio of 3:2 Their Capital balances is on 1st April 2022 were 4,50,000 each. During the Year they had withdrawn Rs 40,000 and 30,000 Respectively.Their Partnership Deed provides The following:-A) Interest on Capital @10% p.aB) Interest on Drawings @6% p.aC) Jatin is entitled to a Salary of Rs 14,000 per month.D) Parekh is entitled to a half yearly rent of Rs 25,000.During the year ending 31st March 2023 they had earned a net profit of Rs 15,48,700 before adjusting the above mentioned provisions , Prepare P&L Appropriation A/C as on 31st March , 2023.?.
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