# on 1 apr 2013 bal of a and b are cap acc current ac a 1,00,000 cr 8420 b 40,000 dr 3200 on 1 july 2013 a withdrew 20,000 from his cap and b introduce 10000 as further cap on same date int on cap should be 8%pa but int to be allowed or charged on current account balances and drawing . ais entitled to 3/5and b 2/5 of profit the manager of firm entitled comm of 10% of profit before any adjustment is made according to deed for the year ended 31 mar 2014 profit was rs 40,000 and drawing of a and b were 12,000 and 10,000 prepare p and l app account cap account and current account ans manager comm 4,000 profit 25400 current account balance a 18460(cr) b 760 (cr) cap account balance a 80,000 b 50,000

Dear Student,

The solution to your query is provided below:

Manager's Commission = 10% of net profit without any adjustment = 10% of 40,000 = 4,000

Remaining profit for appropriation = Rs 36,000

 Profit and Loss Appropriation Account Dr. Cr. Particulars Amount Rs Particulars Amount Rs Interest on Capital A/c: Profit and Loss A/c 36,000 A 6,800 B 3,800 10,600 Profit transferred to: A’s Current A/c 15,240 B’s Current A/c 10,160 25,400 36,000 36,000

 Partners’ Capital Account Dr. Cr. Particulars A B Particulars A B Cash A/c 20,000 Balance b/d 1,00,000 40,000 Balance c/d 80,000 50,000 Cash A/c 10,000 1,00,000 50,000 1,00,000 50,000

 Partners’ Current Account Dr. Cr. Particulars A B Particulars A B Balance b/d 3,200 Balance b/d 8,420 Drawings 12,000 10,000 Interest on Capital A/c 6,800 3,800 Balance c/d 18,460 760 P/L Appropriation A/c 15,240 10,160 30,460 13,960 30,460 13,960

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