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Bhanu and Pratap are partners sharing profit and loss equally. Their fixed capitals as on the 1st april,2017 are ₹8,00,000 and ₹10,00,000 respectively. Their drawings during the year were ₹50,000 and ₹1,00,000 respectively. Interest on Capital is @ 10%p.a. and interest on drawings is @ 15%p.a. Profit for the year ended 31st March ,2018 was 1,20,000. Prepare profit and loss appropriation account.?
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Bhanu and Pratap are partners sharing profit and loss equally. Their f...
Profit and Loss Appropriation Account:

Particulars | Amount (Rs.)
--- | ---
Profit and Loss Account (Net Profit) | 1,20,000
Add: Interest on Capital (Bhanu - 10% on 8,00,000; Pratap - 10% on 10,00,000) | 1,80,000
| 3,00,000
Less: Interest on Drawings (Bhanu - 15% on 50,000; Pratap - 15% on 1,00,000) | 22,500
Amount to be transferred to the Capital Accounts: | 2,77,500

Explanation:

- Bhanu's capital as on 1st April 2017 = ₹8,00,000
- Pratap's capital as on 1st April 2017 = ₹10,00,000
- Total capital as on 1st April 2017 = ₹18,00,000
- Bhanu's drawings during the year = ₹50,000
- Pratap's drawings during the year = ₹1,00,000
- Total drawings during the year = ₹1,50,000
- Interest on Capital for Bhanu = 10% of ₹8,00,000 = ₹80,000
- Interest on Capital for Pratap = 10% of ₹10,00,000 = ₹1,00,000
- Total Interest on Capital = ₹1,80,000
- Interest on Drawings for Bhanu = 15% of ₹50,000 = ₹7,500
- Interest on Drawings for Pratap = 15% of ₹1,00,000 = ₹15,000
- Total Interest on Drawings = ₹22,500
- Net Profit for the year ended 31st March 2018 = ₹1,20,000
- The profit and loss account shows a net profit of ₹1,20,000.
- Interest on Capital is added to the profit and loss account as it is an appropriation of profit.
- Interest on Drawings is deducted from the profit and loss account as it is a charge against profit.
- The remaining amount is transferred to the capital accounts of Bhanu and Pratap in their profit sharing ratio.
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Bhanu and Pratap are partners sharing profit and loss equally. Their fixed capitals as on the 1st april,2017 are ₹8,00,000 and ₹10,00,000 respectively. Their drawings during the year were ₹50,000 and ₹1,00,000 respectively. Interest on Capital is @ 10%p.a. and interest on drawings is @ 15%p.a. Profit for the year ended 31st March ,2018 was 1,20,000. Prepare profit and loss appropriation account.?
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Bhanu and Pratap are partners sharing profit and loss equally. Their fixed capitals as on the 1st april,2017 are ₹8,00,000 and ₹10,00,000 respectively. Their drawings during the year were ₹50,000 and ₹1,00,000 respectively. Interest on Capital is @ 10%p.a. and interest on drawings is @ 15%p.a. Profit for the year ended 31st March ,2018 was 1,20,000. Prepare profit and loss appropriation account.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Bhanu and Pratap are partners sharing profit and loss equally. Their fixed capitals as on the 1st april,2017 are ₹8,00,000 and ₹10,00,000 respectively. Their drawings during the year were ₹50,000 and ₹1,00,000 respectively. Interest on Capital is @ 10%p.a. and interest on drawings is @ 15%p.a. Profit for the year ended 31st March ,2018 was 1,20,000. Prepare profit and loss appropriation account.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bhanu and Pratap are partners sharing profit and loss equally. Their fixed capitals as on the 1st april,2017 are ₹8,00,000 and ₹10,00,000 respectively. Their drawings during the year were ₹50,000 and ₹1,00,000 respectively. Interest on Capital is @ 10%p.a. and interest on drawings is @ 15%p.a. Profit for the year ended 31st March ,2018 was 1,20,000. Prepare profit and loss appropriation account.?.
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