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.

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

 

 

        

 

 

Working Notes:

 

WN1  Calculation of Interest on Capital

 

 

WN2  Calculation of Interest on Drawings

 

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