Rakhi and Shikha are partners in a firm, with capitals of Rs 2,00,000 and Rs 3,00,000 respectively-Accountancy

Rakhi and Shikha are partners in a firm, with capitals of Rs 2,00,000 and Rs 3,00,000 respectively. The profit of the firm, for the year ended 2016-17 is Rs 23,200. As per the Partnership agreement, they share the profit in their capital ratio, after allowing a salary of Rs 5,000 per month to Shikha and interest on Partner’s capital at the rate of 10% p.a. During the year Rakhi withdrew Rs 7,000 and Shikha Rs 10,000 for their personal use. You are required to prepare Profit and Loss Appropriation Account and Partner’s Capital Accounts.

Profit and Loss Appropriation Account

Particulars		amount	Particulars		Amount
To partners s			By Profit and loss		23,200
Rakhi		60,000	loss transfer
			Rakhi	34,720
Interest on			Shikha	52,080	86,800
Rakhi	20,000
Shikha	30,000	50,000
		1,10,000			1,10,000

Partners Capital A/c

Particulars	Rakhi	Shikha	Particulars	Rakhi	Shikha
To Drawings	7,000	10,000	Balance b/d	2,00,000	3,00,000
To Profit & loss Appropriation A/c	34,720	52,080	By Partners Salary		60,000
To balance c/d	1,78,280	3,27,920	By Interest on capital	20,000	30,000
	2,20,000	3,90,000		2,20,000	3,90,000

Ans: Loss Transferred to Rakhi vapital Capital Rs. 34,720 and Shikha capital Rs.52,080

Chapter-2 Partnership Basic: Accounts

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