a and b commenced business with capitals of 60,000 and 20,000 respectively.on 31st december,1990 the Trading profit(before taking into account theprovision of deed)was 24000.Intreston capitals is tobe allowed at 6%p.a.B wasentitledto a salaryof 6000p.a.The drawings of the partners a and bwere 6000and 4000 respectively.The intrest on drawings for A being 200and B100.Assuming that a and b are equal partners,prepare the profit and loss appropriation a/c and partners a/c as at31st dec.

Profit and Loss Appropriation Account

for the year ended December 31, 1990

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Interest on Capital A/c: (WN)

Profit

24,000

A

3,600

Interest on Drawings A/c:

B

1,200

4,800

 A

200

Salary to B

6,000

   B

100

300

Profit transferred to-

A’s Capital A/c

6,750

B’s Capital A/c

6,750

13,500

24,300

24,300

Partners’ Capital Accounts

Cr.

Dr.

Particulars

A

B

Particulars

A

B

Drawings A/c

6,000

4,000

Balance b/d

60,000

20,000

Interest on Drawings A/c

200

100

Interest on Capital A/c

3,600

1,200

Salary A/c

-

6,000

Balance c/d

64,150

29,850

P/L Appropriation A/c

6,750

6,750

70,350

33,950

70,350

33,950