# Provide the solution for the following Solution:
PROFIT & LOSS APPROPRIATION ACCOUNT
for the year ended 31st March, 2022
 PARTICULARS AMOUNT (Rs.) PARTICULARS AMOUNT (Rs.) To Salary: By Profit & Loss A/c- Net Profit 1,55,500 Kabir's Capital A/c 24,000 By Interest on Drawings: (WN3) Zoravar's Capital A/c 24,000 Kabir's Capital A/c 1,500 To Commission :(WN1) Zoravar's Capital A/c 1,500 Parul's Capital A/c 1,00,000 Parul's Capital A/c 1,500 To Interest on Capital: (WN 2 & WN 4) Kabir's Capital A/c 6,000 Zoravar's Capital A/c 3,692 Parul's Capital A/c 2,308 TOTAL 1,60,000 TOTAL 1,60,000

WORKING NOTES:
(1) Computation of Parul's Commission

Sales = Rs.50,00,000
Rate of Commission on sales = 2%
Parul's Commission = Rs.50,00,000 * 2% = Rs.1,00,000

​​​​​​​(2) Computation of Interest on  Partner's Capital

Interest on Kabir's Capital = Rs.5,20,000 * 5% = Rs.26,000

Interest on Zoravar's Capital = Rs.3,20,000 * 5% = Rs.16,000

Interest on Parul's Capital = Rs.2,00,000 * 5% = Rs.10,000

​​ (3) Computation of Interest on  Partner's Drawings

Interest on Kabir's Drawings = Rs.60,000 * 5% * 6/12 = Rs.1,500

Interest on Zoravar's  Drawings = Rs.60,000 * 5%* 6/12 = Rs.1,500

Interest on Parul's  Drawings = Rs.60,000 * 5% * 6/12= Rs.1,500

Note: As question has not specified the date/time of drawing so Interest on drawing is calculated on the basis of average period i.e; 6 months

(4) Computation of Interest on Capital to be provided on Partners' Capital

Net profit + Interest on Drawings = Rs.1,55,500 + Rs.4,500 = Rs.1,60,000

Appropriations  except  Interest on Capital= Salary+ Commission  = Rs.48,000 + Rs.1,00,000 = 1,48,000

Profit Before Interest on capital = Rs.1,60,000 - Rs.1,48,000 = Rs.12,000

Total Interest on Capital ( W.N 2) = Rs.26,000 + Rs.16,000 +10,000 = Rs.52,000

Profit Before Interest on capital is less than Interest on Capital so Interest on Capital will be allowed to the extent of net profit in         the ratio of interest on capital of each partner.

Ratio of Interest on capital = 26,000:16,000:10,000 = 13:8:5

Interest on capital to be provided on Kabir's Capital = Rs.12,000 * 13/26 = Rs.6,000

Interest on capital to be provided on Zoravar's Capital = Rs.12,000 * 8/26 = Rs.3,692
​​
Interest on capital to be provided on Parul's Capital = Rs.12,000 * 5/26 = Rs.2,308
​​

Note:There is no divisible profit left so nothing will be transferred to General Reserve.

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Which study of Taylor aims at eliminating unnecessary movements to ensure timely
completion of work.
(A) Method Study (B) Motion Study (C) Time Study (D) Fatigue Study
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