Sukesh and Vanita Were Partners In a Firm. Their Partnership Agreement Provides

 Sukesh and Vanita were partners in a firm. Their partnership agreement provides that:

(i)    Profits would be shared by Sukesh and Vanita in the ratio of 3:2;

(ii)   5% interest is to be allowed on capital;

(iii)  Vanita should be paid a monthly salary of Rs 600.

The following balances are extracted from the books of the firm, on March 31, 2017.

	Sukesh (Rs)	Vanita (Rs)
Capital Accounts	40,000	40,000
Current Accounts	(Cr.)   7,200	(Cr.)   2,800
Drawings	10,850	8,150

Net profit for the year, before charging interest on capital and after charging partner’s salary was Rs 9,500. Prepare the Profit and Loss Appropriation Account and the Partner’s Current Accounts.

Profit and Loss Appropriation Account

Particulars		Amount(Rs.)	Particulars		Amount(Rs.)
To Interest on capital			By profit and loss A/c		9,500
To Sukesh	2,000
To Vanita	2,000	4,000
To Profit transfered to partners capital A/c
Sukesh	3,300
Vanita	2,200	5,500
		9,500			9,500

Partners capital Account

Particulars	Sukesh	Vanita	Particulars	Sukesh	Vanita
			By balance b/d	40,000	40,000
By balance c/d	40,000	40,000
	40,000	40,000		40,000	40,000

Partners current Account

Particulars	Sukesh	Vanita	Particulars	Sukesh	Vanita
To Drawings	10,850	8,150	By balance b/d	7,200	2,800
To balance b/d	1,650	6,050	By Salary		7,200
			By Interest on capital	2,000	2,000
			By Profit and Loss Appropriation Account	3,300	2,200
	12,500	14,200		12,500	14,200

Chapter-2 Partnership Basic: Accounts

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