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Partnership Accounts—Fundamentals 1.19

Solution: PROFIT AND LOSS APPROPRIATION ACCOUNT
Dr. for the year ended 31st March, 2020 Cr.
Particulars ` Particulars `

To Interest on Capital A/c (WN 1): By Profit and Loss A/c (Net Profit) 10,86,250
Karan’s Current A/c 50,000 By Interest on Drawings A/cs (WN 2):
Hari’s Current A/c 55,000 Karan’s Current A/c 16,125
Ashish’s Current A/c 30,000 1,35,000 Hari’s Current A/c 18,000
To Karan’s Current A/c (Commission) 2,00,000 Ashish’s Current A/c 14,625 48,750
(5% of ` 40,00,000)
To Hari’s Current A/c (Salary) 3,00,000
(` 25,000 × 12)
To Profit transferred to Current A/cs:
Karan (` 5,00,000 × 2/5) 2,00,000
Hari (` 5,00,000 × 2/5) 2,00,000
Ashish (` 5,00,000 × 1/5) 1,00,000 5,00,000
11,35,000 11,35,000

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Date Particulars Karan Hari Ashish Date Particulars Karan Hari Ashish
` ` ` ` ` `
2019 2019
Sept. 30 To Bank A/c ... 1,00,000 ... Apr. 1 By Bank A/c 2,00,000 6,00,000 3,00,000
2020 Sept. 30 By Bank A/c 6,00,000 ... ...
Mar. 31 To Balance c/d 8,00,000 5,00,000 3,00,000
8,00,000 6,00,000 3,00,000 8,00,000 6,00,000 3,00,000

Dr. PARTNERS’ CURRENT ACCOUNTS Cr.
Date Particulars Karan Hari Ashish Date Particulars Karan Hari Ashish
` ` ` ` ` `
2019 2020
June 30 To Drawings A/c 50,000 80,000 90,000 Mar. 31 By Interest on
Sept. 30 To Drawings A/c 90,000 80,000 30,000 Capital A/c 50,000 55,000 30,000
Dec. 31 To Drawings A/c 1,00,000 80,000 60,000 Mar. 31 By P and L Appro-
2020 priation A/c 2,00,000 ... ...
Mar. 31 To Interest on (Commision)
Drawings A/c 16,125 18,000 14,625 Mar. 31 By Profit and Loss
Mar. 31 To Balance c/d 1,93,875 2,97,000 ... Appropriation
A/c (Salaries) ... 3,00,000 ...
Mar. 31 By Profit and Loss
Appropriation
A/c (Profit) 2,00,000 2,00,000 1,00,000
Mar. 31 By Balance c/d ... ... 64,625
4,50,000 5,55,000 1,94,625 4,50,000 5,55,000 1,94,625