Assignment X and Y are partners sharing profit and loss in the ratio of 7:3. their capital accounts as at ist April 2019 stood at X rupees 5 00000, Y Rupees 400000. partners are allowed interest on capital at the rate of 5% per annum. drawings of X and Y during the year ended 31st March 2020 Rs. 72000 and 50000 respectively. profit for the year before allowing interest on capital and salary to Y at the rate of rupees 5000 per month was rupees 8,00,000. 10% of the divisible profit is to be set aside as General reserve. Prepare profit and loss appropriation account.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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