Sarthaks Test
0 votes
4.6k views
in Accounts by (64.1k points)

On 1st April, 2013, Jay and Vijay entered into partnership for supplying laboratory equipments’ government schools situated in remote and backward areas. They contributed capitals of Rs.80,000 and; Rs.50,000 respectively and agreed to share the profits in the ratio of 3:2. The Partnership Deed provided that interest on capital shall be allowed at 9% per annum. During the year the firm earned a profit of Rs.7,800. Showing your calculations clearly, prepare ‘Profit and Loss Appropriation Account’ of Jay and Vijay for the year ended 31st March, 2014.

1 Answer

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

Working Notes:

1. calculation of interest on capital

2. calculation of proportinate interest on capital

Note: interest on capital is to be treated as an appropriation of profits and extent available profits i e Rs.7,800

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

...