Beruflich Dokumente
Kultur Dokumente
Profit and Loss Account XXX Profit and Loss Account XXX
(If there is loss) (If there is profit)
Interest on Capital XX Interest on drawings XX
Salary to partner XX Partners' Capital Accounts XX
Commission to partner XX (Distribution of Loss)
Interest on partners' loan XX
Partners' Capital Accounts XX
(Distribution of Profit)
XXXX XXXX
Illustration 1
On 1st Jan 2009 Anand, Balan and Chandran entered into
partnership contributing Rs. 60,000, Rs. 40,000 and Rs. 20,000
respectively and sharing profits and losses in the ratio of 5:3:2. Balan
is entitled to a salary of Rs. 5000 and Chandran a commission of Rs.
4000 per year. Interest on capital is to be allowed at 5% per annum.
During the year Anand withdrew Rs. 10000, Balan Rs. 6000 and
Chandran Rs. 5000. Interest on drawings was charged Rs. 250 on
Anand's drawings, Rs. 150 on Balan's drawings and Rs. 200 on
Chandran's drawings. Profit in 2009 before the above mentioned
adjustments was Rs. 50000.
You are required to pass necessary journal entries relating to
appropriation of profit and prepare Profit and Loss Appropriation
Account and the partner's capital accounts.
Solution
50600 50600
Anand's Capital Account
Date Particulars Amount Date Particulars Amount
80800 80800
57680 57680
32120 32120