D,E and F were partners in a firm sharing profits in the ratio of 5:7:8 their fixed capitals were D - Accountancy - Accounting for Partnership Basic Concepts

Question

D,E and F were partners in a firm sharing profits in the ratio
of 5:7:8 their fixed capitals were D 500000 E 700000 and F 800000
their partnership deed provided for the following ------
intrest on capital @10% p a
salary of 10000 per month of F
intrest on drawings @12%p a
D withdrew 40000 on 31 january,2009 E withdrew 50000 on 31
march,2009 and F withdrew 30000 on 31 december,2009 during the year
profit was 350000 prepare profit and loss app a/c for the year 31
december

Komal Verma · Accepted Answer

Profit and Loss Appropriation Account for the year ended December 31, 2009 Dr Cr Particulars Amount Rs Particulars Amount Rs Interest on Capital to- Profit and Loss A/c 3,50,000 D 50,000 (Net Profit) E 70,000 Interest on Drawings F 80,000 2,00,000 D 4,400 Salary to F (Rs 10,000 Ã— 12) 1,20,000 E 4,500 8,900 Profit transferred to- F NIL Dâ€™s Capital A/c 9,725 Eâ€™s Capital A/c 13,615 Fâ€™s Capital A/c 15,560 38,900 3,58,900 3,58,900 Working Notes: WN1 Calculation of Interest on Capital

WN2 Calculation of Interest on Drawings

Profit and Loss Appropriation Account for the year ended December 31, 2009
Dr.						Cr.
Particulars		Amount Rs	Particulars		Amount Rs
Interest on Capital to-			Profit and Loss A/c		3,50,000
D	50,000		(Net Profit)
E	70,000		Interest on Drawings
F	80,000	2,00,000	D	4,400
Salary to F (Rs 10,000 × 12)		1,20,000	E	4,500	8,900
Profit transferred to-			F	NIL
D’s Capital A/c	9,725
E’s Capital A/c	13,615
F’s Capital A/c	15,560	38,900
		3,58,900			3,58,900