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A, B and Care partners share profits and losses in the ratio of 3:2:1.
Their capitals ₹1,00,000, ₹75,000 and ₹50,000 respectively. They agreed
to allow interest on capital @ 10 % p.a. and agreed to charge interest on
drawings @10% p.a. Their drawings for the year were ₹10,000, ₹8,000
and ₹6,000 respectively. C was very active getting a salary of ₹2,000 per
month and in return, he guaranteed that firm’s profit would not be less
than ₹80,000 before charging or allowing interest and salary payable to
C. Actual profit for the year 2011 was ₹75,000. Prepare Profit and Loss
Appropriation Account and Partners Capital Account.?
Their capitals ₹1,00,000, ₹75,000 and ₹50,000 respectively. They agreed
to allow interest on capital @ 10 % p.a. and agreed to charge interest on
drawings @10% p.a. Their drawings for the year were ₹10,000, ₹8,000
and ₹6,000 respectively. C was very active getting a salary of ₹2,000 per
month and in return, he guaranteed that firm’s profit would not be less
than ₹80,000 before charging or allowing interest and salary payable to
C. Actual profit for the year 2011 was ₹75,000. Prepare Profit and Loss
Appropriation Account and Partners Capital Account.?
Most Upvoted Answer
A, B and Care partners share profits and losses in the ratio of 3:2:1....
Profit and Loss Appropriation Account
- Net Profit for the year 2011: ₹75,000
- Salary payable to C: ₹24,000 (₹2,000 x 12 months)
- Guaranteed profit by C: ₹80,000
- Total Profit before interest and salary: ₹179,000
Calculation of Interest and Salary
- Interest on A's capital: ₹10,000 (10% of ₹1,00,000)
- Interest on B's capital: ₹7,500 (10% of ₹75,000)
- Interest on C's capital: ₹5,000 (10% of ₹50,000)
- Total interest on capital: ₹22,500
- Total interest on drawings: ₹2,400 (10% of ₹24,000)
Profit and Loss Appropriation Account
- Net Profit for the year: ₹75,000
- Add: Interest on capital: ₹22,500
- Less: Interest on drawings: ₹2,400
- Less: Salary payable to C: ₹24,000
- Profit available for distribution: ₹70,100
Partners Capital Account
- A's capital: ₹1,00,000 + ₹10,000 (interest) - ₹10,000 (drawings) = ₹1,00,000
- B's capital: ₹75,000 + ₹7,500 (interest) - ₹8,000 (drawings) = ₹74,500
- C's capital: ₹50,000 + ₹5,000 (interest) - ₹6,000 (drawings) = ₹49,000
This way, the profit and loss appropriation account shows the distribution of profit after considering interest on capital, interest on drawings, and salary payable to C. Partners' capital accounts reflect the updated capital balances after these adjustments.
- Net Profit for the year 2011: ₹75,000
- Salary payable to C: ₹24,000 (₹2,000 x 12 months)
- Guaranteed profit by C: ₹80,000
- Total Profit before interest and salary: ₹179,000
Calculation of Interest and Salary
- Interest on A's capital: ₹10,000 (10% of ₹1,00,000)
- Interest on B's capital: ₹7,500 (10% of ₹75,000)
- Interest on C's capital: ₹5,000 (10% of ₹50,000)
- Total interest on capital: ₹22,500
- Total interest on drawings: ₹2,400 (10% of ₹24,000)
Profit and Loss Appropriation Account
- Net Profit for the year: ₹75,000
- Add: Interest on capital: ₹22,500
- Less: Interest on drawings: ₹2,400
- Less: Salary payable to C: ₹24,000
- Profit available for distribution: ₹70,100
Partners Capital Account
- A's capital: ₹1,00,000 + ₹10,000 (interest) - ₹10,000 (drawings) = ₹1,00,000
- B's capital: ₹75,000 + ₹7,500 (interest) - ₹8,000 (drawings) = ₹74,500
- C's capital: ₹50,000 + ₹5,000 (interest) - ₹6,000 (drawings) = ₹49,000
This way, the profit and loss appropriation account shows the distribution of profit after considering interest on capital, interest on drawings, and salary payable to C. Partners' capital accounts reflect the updated capital balances after these adjustments.
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A, B and Care partners share profits and losses in the ratio of 3:2:1.Their capitals ₹1,00,000, ₹75,000 and ₹50,000 respectively. They agreedto allow interest on capital @ 10 % p.a. and agreed to charge interest ondrawings @10% p.a. Their drawings for the year were ₹10,000, ₹8,000and ₹6,000 respectively. C was very active getting a salary of ₹2,000 permonth and in return, he guaranteed that firm’s profit would not be lessthan ₹80,000 before charging or allowing interest and salary payable toC. Actual profit for the year 2011 was ₹75,000. Prepare Profit and LossAppropriation Account and Partners Capital Account.?
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A, B and Care partners share profits and losses in the ratio of 3:2:1.Their capitals ₹1,00,000, ₹75,000 and ₹50,000 respectively. They agreedto allow interest on capital @ 10 % p.a. and agreed to charge interest ondrawings @10% p.a. Their drawings for the year were ₹10,000, ₹8,000and ₹6,000 respectively. C was very active getting a salary of ₹2,000 permonth and in return, he guaranteed that firm’s profit would not be lessthan ₹80,000 before charging or allowing interest and salary payable toC. Actual profit for the year 2011 was ₹75,000. Prepare Profit and LossAppropriation Account and Partners Capital Account.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A, B and Care partners share profits and losses in the ratio of 3:2:1.Their capitals ₹1,00,000, ₹75,000 and ₹50,000 respectively. They agreedto allow interest on capital @ 10 % p.a. and agreed to charge interest ondrawings @10% p.a. Their drawings for the year were ₹10,000, ₹8,000and ₹6,000 respectively. C was very active getting a salary of ₹2,000 permonth and in return, he guaranteed that firm’s profit would not be lessthan ₹80,000 before charging or allowing interest and salary payable toC. Actual profit for the year 2011 was ₹75,000. Prepare Profit and LossAppropriation Account and Partners Capital Account.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A, B and Care partners share profits and losses in the ratio of 3:2:1.Their capitals ₹1,00,000, ₹75,000 and ₹50,000 respectively. They agreedto allow interest on capital @ 10 % p.a. and agreed to charge interest ondrawings @10% p.a. Their drawings for the year were ₹10,000, ₹8,000and ₹6,000 respectively. C was very active getting a salary of ₹2,000 permonth and in return, he guaranteed that firm’s profit would not be lessthan ₹80,000 before charging or allowing interest and salary payable toC. Actual profit for the year 2011 was ₹75,000. Prepare Profit and LossAppropriation Account and Partners Capital Account.?.
A, B and Care partners share profits and losses in the ratio of 3:2:1.Their capitals ₹1,00,000, ₹75,000 and ₹50,000 respectively. They agreedto allow interest on capital @ 10 % p.a. and agreed to charge interest ondrawings @10% p.a. Their drawings for the year were ₹10,000, ₹8,000and ₹6,000 respectively. C was very active getting a salary of ₹2,000 permonth and in return, he guaranteed that firm’s profit would not be lessthan ₹80,000 before charging or allowing interest and salary payable toC. Actual profit for the year 2011 was ₹75,000. Prepare Profit and LossAppropriation Account and Partners Capital Account.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A, B and Care partners share profits and losses in the ratio of 3:2:1.Their capitals ₹1,00,000, ₹75,000 and ₹50,000 respectively. They agreedto allow interest on capital @ 10 % p.a. and agreed to charge interest ondrawings @10% p.a. Their drawings for the year were ₹10,000, ₹8,000and ₹6,000 respectively. C was very active getting a salary of ₹2,000 permonth and in return, he guaranteed that firm’s profit would not be lessthan ₹80,000 before charging or allowing interest and salary payable toC. Actual profit for the year 2011 was ₹75,000. Prepare Profit and LossAppropriation Account and Partners Capital Account.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A, B and Care partners share profits and losses in the ratio of 3:2:1.Their capitals ₹1,00,000, ₹75,000 and ₹50,000 respectively. They agreedto allow interest on capital @ 10 % p.a. and agreed to charge interest ondrawings @10% p.a. Their drawings for the year were ₹10,000, ₹8,000and ₹6,000 respectively. C was very active getting a salary of ₹2,000 permonth and in return, he guaranteed that firm’s profit would not be lessthan ₹80,000 before charging or allowing interest and salary payable toC. Actual profit for the year 2011 was ₹75,000. Prepare Profit and LossAppropriation Account and Partners Capital Account.?.
Solutions for A, B and Care partners share profits and losses in the ratio of 3:2:1.Their capitals ₹1,00,000, ₹75,000 and ₹50,000 respectively. They agreedto allow interest on capital @ 10 % p.a. and agreed to charge interest ondrawings @10% p.a. Their drawings for the year were ₹10,000, ₹8,000and ₹6,000 respectively. C was very active getting a salary of ₹2,000 permonth and in return, he guaranteed that firm’s profit would not be lessthan ₹80,000 before charging or allowing interest and salary payable toC. Actual profit for the year 2011 was ₹75,000. Prepare Profit and LossAppropriation Account and Partners Capital Account.? in English & in Hindi are available as part of our courses for UPSC.
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Here you can find the meaning of A, B and Care partners share profits and losses in the ratio of 3:2:1.Their capitals ₹1,00,000, ₹75,000 and ₹50,000 respectively. They agreedto allow interest on capital @ 10 % p.a. and agreed to charge interest ondrawings @10% p.a. Their drawings for the year were ₹10,000, ₹8,000and ₹6,000 respectively. C was very active getting a salary of ₹2,000 permonth and in return, he guaranteed that firm’s profit would not be lessthan ₹80,000 before charging or allowing interest and salary payable toC. Actual profit for the year 2011 was ₹75,000. Prepare Profit and LossAppropriation Account and Partners Capital Account.? defined & explained in the simplest way possible. Besides giving the explanation of
A, B and Care partners share profits and losses in the ratio of 3:2:1.Their capitals ₹1,00,000, ₹75,000 and ₹50,000 respectively. They agreedto allow interest on capital @ 10 % p.a. and agreed to charge interest ondrawings @10% p.a. Their drawings for the year were ₹10,000, ₹8,000and ₹6,000 respectively. C was very active getting a salary of ₹2,000 permonth and in return, he guaranteed that firm’s profit would not be lessthan ₹80,000 before charging or allowing interest and salary payable toC. Actual profit for the year 2011 was ₹75,000. Prepare Profit and LossAppropriation Account and Partners Capital Account.?, a detailed solution for A, B and Care partners share profits and losses in the ratio of 3:2:1.Their capitals ₹1,00,000, ₹75,000 and ₹50,000 respectively. They agreedto allow interest on capital @ 10 % p.a. and agreed to charge interest ondrawings @10% p.a. Their drawings for the year were ₹10,000, ₹8,000and ₹6,000 respectively. C was very active getting a salary of ₹2,000 permonth and in return, he guaranteed that firm’s profit would not be lessthan ₹80,000 before charging or allowing interest and salary payable toC. Actual profit for the year 2011 was ₹75,000. Prepare Profit and LossAppropriation Account and Partners Capital Account.? has been provided alongside types of A, B and Care partners share profits and losses in the ratio of 3:2:1.Their capitals ₹1,00,000, ₹75,000 and ₹50,000 respectively. They agreedto allow interest on capital @ 10 % p.a. and agreed to charge interest ondrawings @10% p.a. Their drawings for the year were ₹10,000, ₹8,000and ₹6,000 respectively. C was very active getting a salary of ₹2,000 permonth and in return, he guaranteed that firm’s profit would not be lessthan ₹80,000 before charging or allowing interest and salary payable toC. Actual profit for the year 2011 was ₹75,000. Prepare Profit and LossAppropriation Account and Partners Capital Account.? theory, EduRev gives you an
ample number of questions to practice A, B and Care partners share profits and losses in the ratio of 3:2:1.Their capitals ₹1,00,000, ₹75,000 and ₹50,000 respectively. They agreedto allow interest on capital @ 10 % p.a. and agreed to charge interest ondrawings @10% p.a. Their drawings for the year were ₹10,000, ₹8,000and ₹6,000 respectively. C was very active getting a salary of ₹2,000 permonth and in return, he guaranteed that firm’s profit would not be lessthan ₹80,000 before charging or allowing interest and salary payable toC. Actual profit for the year 2011 was ₹75,000. Prepare Profit and LossAppropriation Account and Partners Capital Account.? tests, examples and also practice UPSC tests.
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