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

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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

ParticularsamountParticularsAmount
To partners sBy Profit and loss23,200
Rakhi60,000loss transfer
Rakhi34,720
Interest onShikha52,08086,800
Rakhi20,000
Shikha30,00050,000
1,10,0001,10,000
Partners Capital A/c
ParticularsRakhiShikhaParticularsRakhiShikha
To Drawings7,00010,000Balance b/d2,00,0003,00,000
To Profit & loss Appropriation A/c34,72052,080By Partners Salary60,000
To balance c/d1,78,2803,27,920By Interest on capital20,00030,000
2,20,0003,90,0002,20,0003,90,000

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



Location: India

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