Sarthaks APP
0 votes
9.0k views
in Accounts by (64.1k points)

Simmi and Sonu are partners in a firm, sharing profits and losses in the ratio of 3:1. The profit and loss account of the firm for the year endingMarch 31, 2006 shows a net profit of Rs. 1,50,000. 

Prepare the Profit and Loss Appropriation Account by taking into consideration the following information: 

(i) Partners capital on April 1, 2005; Simmi, Rs. 30,000; Sonu, Rs. 60,000; 

(ii) Current accounts balances on April 1, 2005; Simmi, Rs. 30,000 (cr.); Sonu, Rs. 15,000 (cr.); 

(iii) Partners drawings during the year amounted to Simmi, Rs. 20,000; Sonu, Rs. 15,000; 

(iv) Interest on capital was allowed @ 5% p.a.; 

(v) Interest on drawing was to be charged @ 6% p.a. at an average of six months;

(vi) Partners’ salaries : Simmi Rs. 12,000 and Sonu Rs. 9,000. Also show the partners’ current accounts.

1 Answer

0 votes
by (106k points)
selected by
 
Best answer

The correct answer is :

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...