How to make profit and loss appropriation account

A, B and C are partners sharing profits and losses in the proportion of A 1/2 B 3/10, C 1/5 after providing for the interest @5% pa on their respective capitals viz. A Rs.50000, B Rs.30000, C Rs.20000 and allowing B and C a salary of Rs.5000 each per annum. During the year 2015-16, A has drawn Rs.10000 and B and C in addition to their salaries have drawn Rs.2500 and Rs.1000 respectively. The profit and loss account for the year ended 31st march, 2016 showed a net profit of Rs.45000 before charging interest on capitals and partners salaries. On 1st April, 2015, the balances in the current accounts of the partners were A (Cr.) Rs.4500, B (Cr.) Rs.1500 and C (Cr.) Rs.1000. Interest is not charged on drawings or current account balances. Show the partners capital and current accounts as at 31st, March, 2016 after division of profits in accordance with the partnership agreement.

asked Mar 2, 2017 in Partnership-Fundamentals by sachi (14 points) 1,184 views

1 Answer

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answered Mar 4, 2017 by jbsclasses (3,971 points)