Page 49 - DEBKVOL-1

Chapter 2 Accounting for Partnership Firms—Fundamentals 2.21
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Illustration 15 (Appropriation of Profit).
Complete the missing amounts (?) in the following accounts:

Dr. PROFIT AND LOSS APPROPRIATION ACCOUNT for the year ended 31st March, 2018 Cr.
Particulars ` Particulars `
To Partners’ Salary A/c: By Net Profit as per Profit and Loss A/c 3,00,000
B’s Current A/c ? Less: Interest on B’s Loan
C’s Current A/c ? ? (` 20,000 × 6/100) ? ?
To Interest on Capital A/c: By Interest on Drawings A/c:
A’s Current A/c 11,000 A’s Current A/c ?
B’s Current A/c 8,750 B’s Current A/c ?
C’s Current A/c 4,500 24,250 C’s Current A/c ? ?
To Profit transferred to Current A/cs:
A ?
B ?
C ? ?
3,06,500 3,06,500

Dr. PARTNERS’ CURRENT ACCOUNTS Cr.
Particulars A (`) B (`) C (`) Particulars A (`) B (`) C (`)
To Balance b/d 4,000 By Balance b/d 10,000 5,000
To Drawings A/c ? ? ? By Salary A/c 20,000 30,000
To Interest on By Interest on
Drawings A/c 3,300 2,200 2,200 Capital A/c ? ? ?
To Balance c/d 38,600 67,450 35,750 By Profit and Loss
App. A/c 92,900 92,900 46,450
1,13,900 1,21,650 85,950 1,13,900 1,21,650 85,950

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars A (`) B (`) C (`) Particulars A (`) B (`) C (`)
To Bank A/c 10,000 By Balance b/d 1,00,000 80,000 50,000
To Balance c/d ? ? ? By Bank A/c 20,000 15,000
1,20,000 95,000 50,000 1,20,000 95,000 50,000
Solution:
Dr. PROFIT AND LOSS APPROPRIATION ACCOUNT for the year ended 31st March, 2018 Cr.
Particulars ` Particulars `
To Partners’ Salary A/c: By Net Profit as per Profit and Loss A/c 3,00,000
B’s Current A/c 20,000 Less: Interest on B’s Loan
C’s Current A/c 30,000 50,000 (` 20,000 × 6/100) 1,200 2,98,800
To Interest on Capital A/c: By Interest on Drawings A/c:
A’s Current A/c 11,000 A’s Current A/c 3,300
B’s Current A/c 8,750 B’s Current A/c 2,200
C’s Current A/c 4,500 24,250 C’s Current A/c 2,200 7,700
To Profit transferred to Current A/cs:
A 92,900
B 92,900
C 46,450 2,32,250
3,06,500 3,06,500