PARTNERSHIP BASIC- P/L APPROPRIATION A/C (Q.2.)
Channel: vikash chakraborty
Date: 18/03/2017

Q.2. A, B and C were partners in a firm having capital of Rs.60,000; Rs.60,000 and Rs. 80,000, respectively. Their Current Account balances were A: Rs.10,000; B: Rs.5,000 and C: Rs.2,000 (Dr.) . According to the partnership deed, the partners were entitled to interest on capital @ 5% p.a. C being the working partner was also entitled to a salary of Rs. 6,000 p.a. The profits were to be divided as follows:
(a) The first Rs.20,000 in proportion to their capitals.
(b) Next Rs. 30,000 in the ratio of 5:3:2.
(c) Remaining profits to be shared equally.
The firm made a profit of Rs. 1,56,000 before charging any of the above items. Prepare the Profit and Loss Appropriation Account and pass necessary Journal entry for apportionment of Profit.
CBSE 2009