Page 279 - AAAXII

M.266 An Aid to Accountancy—CBSE XII

12. PROFIT AND LOSS ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Particulars ` Particulars `
To Interest on Z’s Loan A/c 15,000 By Profit before Adjustments 2,37,000
(` 5,00,000 × 6/100 × 6/12)
To Manager’s Salary A/c (` 2,000 × 12) 24,000
To Manager’s Commission A/c 18,000
[10/110 (` 2,37,000 – ` 15,000 – ` 24,000)]
To Net Profit transferred to Profit and Loss
Appropriation A/c 1,80,000
2,37,000 2,37,000

PROFIT AND LOSS APPROPRIATION ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Particulars ` Particulars `
To General Reserve A/c (10% of ` 1,80,000) 18,000 By Net Profit (as per Profit and Loss A/c) 1,80,000
To Interest on Capital A/cs: By Interest on Drawings A/cs:
X 15,000 X (` 36,000 × 6.5/12 × 6/100) 1,170
Y 12,500 27,500 Y (` 36,000 × 6/12 × 6/100) 1,080
To Z’s Salary A/c 60,000 Z (` 36,000 × 5.5/12 × 6/100) 990 3,240
To X’s Remuneration A/c (10% of ` 1,80,000) 18,000
To Y’s Commission A/c 5,136
[10/110(` 1,80,000 – ` 18,000 – ` 27,500 –
` 60,000 – ` 18,000)]
To Profit transferred to:
X’s Capital A/c 18,201
Y’s Capital A/c 18,201
Z’s Capital A/c 18,202 54,604
1,83,240 1,83,240
Note: Interest on Partner’s Loan, Manager’s Salary and Commission are charge against profit and not appropri-
ations of profits. Hence, these items have been debited to Profit and Loss Account and not to Profit and
Loss Appropriation Account.
13. INCOME AND EXPENDITURE ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Expenditure ` Income `
To Salaries 31,500 By Subscriptions 60,000
To Postage 1,250 Add: Outstanding (2017–18) 15,000 75,000
To Rent 9,000 (WN 1)
To Printing and Stationery 14,000 By Entrance Fees 1,100
To Sports Material Consumed: By Sale of Old Magazines 450
Opening Stock 3,000 By Accrued Interest on Investments 5,250
Add: Purchases 11,500 (` 70,000 × 10/100 × 9/12)
14,500
Less: Closing Stock 4,500 10,000
To Miscellaneous Expenses 3,100
To Depreciation on Furniture 1,000
(` 20,000 × 6/12 × 10/100)
To Surplus, i.e., excess of Income over Expenditure 11,950
81,800 81,800