Important questions of Profit and Loss appropriation Account

PROFIT AND LOSS APPROPRIATION SOME IMPORTANT QUESTIONS:

1. Prem and Manoj are partners in a firm sharing profit in the ratio of 3 ratio 2 the partnership deed provided that Prem was to be paid salary of 2500 rupees per month and Manoj was to get a commission of rupees 10000 per year. Interest on capital was to be allowed@5% per annum interest on drawing was to be charged@6% per annum. Interest on frames drawing was 1250 rupees and Manoj duaaen was 425 rupees. Interest on capitals of the partners were 10000 rupees and 7500 rupees respectively. The form on a profit of 90575 rupees for the year ended 31st March 2016. Prepare the Profit and Loss appropriation account of the form.

2. Amit and Vijay a started a partnership business on 1st April 2016. Their capital contribution were 200000 rupees and 150000 rupees respectively the partnership deed provided that:

* Interest on capital be allowed@10 per annum.

* Amit it to get a salary of 2000 per month and Vijay 3000 rupees per month.

* Prophets are to be shared in the ratio of 3:2

Profit for the year ended 31st March 2017 before appropriations was 216000 rupees. Stone drawings amounted to 2200 rupees for Amit and 2500 rupees for Vijay. Prepare Profit and Loss appropriation account.

3. A and B are partners sharing profit in the ratio of 3:2 with capitals of 50000 rupees and 30000 rupees respectively. Interest on capital is agreed @ 6% per annum. Be is to be allowed an annual salary of rupees 2500. Print the year profit prior to interest on capital but after charging B's salary amounted to  12500 rupees a provision of 5% of the the profit is to be made in respect of managers Commission.

Prepare an account showing the allocation of profit and the partners capital account.

4. Ali and Bahadur are partners in a firm sharing profits and losses as early 70% and Bahadur 30%. their respective capitals as at 1st April 2016 stand as early 25,000 rupees and Bahadur 20000 rupees. The partners are allowed interest on capitals@5% per annum. drawing of the partners during the year ended 31st March 2017 amounted to 3500 rupees and 2500 rupees respectively. Profit for the year before charging interest on capital and annual salary of Bahadur 3000 rupees amounted to 40000, percent of divisible profit is to be transferred to reserve. you are asked to show partners current account and capital account recording the about transaction.

5. Anshul and asha are partners sharing profits and losses in the ratio 3:2 Anshul being and non working partners contribute 800000 rupees as her capital. Asha Being a working partner did not contribute capital. The partnership deed provides for interest on capital @ 5% and salary to every working partners @ 2000 rupees per month. net profit before providing for interest on capital and partners salary for the year ended 31st March 2016 was 32000 rupees.

Show the distribution of profits.