Page 39 - DEBKVOL-1

Chapter 2 Accounting for Partnership Firms—Fundamentals 2.11
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JOURNAL
Date Particulars L.F. Dr. Cr.
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2018
March 31 Profit and Loss A/c ...Dr. 1,92,800
To Profit and Loss Appropriation A/c 1,92,800
(Net profit transferred to Profit and Loss Appropriation Account)
Interest on Capital A/c ...Dr. 30,000
To A’s Capital A/c 12,000
To B’s Capital A/c 18,000
(Interest on capital allowed @ 6% p.a.)

Profit and Loss Appropriation A/c ...Dr. 30,000
To Interest on Capital A/c 30,000
(Interest on Capital transferred to Profit and Loss Appropriation Account)
A’s Drawings A/c ...Dr. 1,20,000
B’s Drawings A/c ...Dr. 1,20,000
To Cash/Bank A/c 2,40,000
(Drawings made by the partners during the year)

A’s Capital A/c ...Dr. 1,20,000
B’s Capital A/c ...Dr. 1,20,000
To A’s Drawings A/c 1,20,000
To B’s Drawings A/c 1,20,000
(Amount of drawings transferred to their respective Capital Accounts)

A’s Capital A/c ...Dr. 3,600
B’s Capital A/c ...Dr. 3,600
To Interest on Drawings A/c 7,200
(Interest charged on drawings of the partners)
Interest on Drawings A/c ...Dr. 7,200
To Profit and Loss Appropriation A/c 7,200
(Interest on Drawings transferred to Profit and Loss
Appropriation Account)

Profit and Loss Appropriation A/c ...Dr. 1,70,000
To A’s Capital A/c 68,000
To B’s Capital A/c 1,02,000
(Divisible profit distributed in the ratio of 2 : 3)