Simmi and Sonu are Partners In a Firm, Sharing Profits and Losses in the Ratio of 3:1 - Bzziii.com

Simmi and Sonu are partners in a firm, sharing profits and losses in the ratio of 3:1. The profit and loss account of the firm for the year ending March 31, 2017 shows a net profit of Rs 1,50,000. Prepare the Profit and Loss Appropriation Account by taking into consideration the following information:

(i) Partners capital on April 1, 2016;

Simmi, Rs 30,000; Sonu, Rs 60,000;

(ii) Current accounts balances on April 1, 2016;

Simmi, Rs 30,000 (cr.); Sonu, Rs 15,000 (cr.);

(iii) Partners drawings during the year amounted to

Simmi, Rs 20,000; Sonu, Rs 15,000;

(iv) Interest on capital was allowed @ 5% p.a.;

(v) Interest on drawing was to be charged @ 6% p.a. at an average of six months;

(vi) Partners’ salaries : Simmi Rs 12,000 and Sonu Rs 9,000. Also show the partners’ current accounts.

Profit and loss Appropriation A/c 

Particulars		Amount(Rs.)	Particulars		Amount(Rs.)
Partner’s salary			Profit and loss A/c		1,50,000
simmi	12,000		Interest on drawing
sonu	9,000	21,000	simmi	600
Interest on Capital			sonu	450	1,050
simmi	1,500
sonu	3,000	4,500
Profit transfered to Partner’s Current A/c
simmi	94,162
sonu	31,388	1,25,550
		1,51,050			1,51,050

Partner’s Capital Account

Particulars	simmi	sonu	Particulars	simmi	sonu
			By balance b/d	30,000	60,000
To balance c/d	30,000	60,000
	30,000	60,000		30,000	60,000

Partner’s Current Account

Particulars	simmi	sonu	Particulars	simmi	sonu
Drawings	20,000	15,000	By balance b/d	30,000	15,000
Interest on Drawings	600	450	Interest on capital	1,500	3,000
Balance c/d	1,17,662	43,388	Salary	12,000	9,000
			Profit and loss Appropriation A/c	94,162	31,388
	1,37,662	58,388		1,37,662	58,388

Chapter-2 Partnership Basic: Accounts

8 9 10 11 12