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Model Test Papers M.91

13. PROFIT AND LOSS APPROPRIATION ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Particulars ` Particulars `
To Interest on Capital A/cs: By Net Profit as per Profit and Loss A/c 7,55,000
X 40,000 (WN 1)
Y 40,000 By Interest on Drawings A/cs:
Z 20,000 1,00,000 X 2,000
To Z’s Salary A/c 60,000 Y 2,000
To Profit transferred to: Z 1,000 5,000
X’s Current A/c (2/5) 2,40,000
Y’s Current A/c (2/5) 2,40,000
Z’s Current A/c (1/5) 1,20,000 6,00,000
7,60,000 7,60,000

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars X Y Z Particulars X Y Z
` ` ` ` ` `
To Balance c/d 4,00,000 4,00,000 2,00,000 By Balance b/d (WN 2) 4,00,000 4,00,000 2,00,000
4,00,000 4,00,000 2,00,000 4,00,000 4,00,000 2,00,000

Dr. PARTNERS’ CURRENT ACCOUNTS Cr.
Particulars X Y Z Particulars X Y Z
` ` ` ` ` `
To Drawings A/c (WN 3) 40,000 40,000 20,000 By Interest on Capital A/c 40,000 40,000 20,000
To Interest on Drawings By Z’s Salary A/c ... ... 60,000
A/c 2,000 2,000 1,000 By Profit and Loss
To Balance c/d 2,38,000 2,38,000 1,79,000 Appropriation A/c 2,40,000 2,40,000 1,20,000
(Profit)
2,80,000 2,80,000 2,00,000 2,80,000 2,80,000 2,00,000
Working Notes:
1. Net Profit as per Profit and Loss Accout = ` 7,60,000 – ` 5,000 = ` 7,55,000 (Balancing Figure).
2. Calculation of Partners’ Capitals:
Principal × Rate × Time
Interest =
100
Interest ¥100
So, Principal (P) =
Rate ¥ Time
100
So, X’s Capital = ` 40,000 × = ` 4,00,000;
10 ¥1
100
Y’s Capital = ` 40,000 × = ` 4,00,000;
10 ¥1
100
Z’s Capital = ` 20,000 × = ` 2,00,000.
10 ¥1
3. Calculation of Partners’ Drawings:
Interest on drawings must have been charged for an average period of 6 months since date of drawings is
not given.
100 12
So, X’s Drawings = ` 2,000 × ¥ = ` 40,000;
10 6