Atul and Mithun are partners sharing profits in the ratio of 3 : 2. Balances as on 1st April 2022 were as follows
Atul and Mithun are partners sharing profits in the ratio of 3 : 2. Balances as on 1st April 2022 were as follows: Capital Accounts (Fixed): Atul – ₹ 5,00,000 and Mithun – ₹ 6,00,000. Loan Account: Atul – ₹ 3,00,000 (Cr.) and Mithun – ₹ 2,00,000 (Dr.)
It was agreed to allow and charge interest @ 8% p.a. Partnership Deed was provided to allow interest on capital @ 10% p.a. Interest on Drawings was charged ₹ 5,000 each.
Profit before giving effect to above was ₹ 2,28,000 for the year ended 31st March 2023.
Prepare Profit and Loss Appropriation Account.
[Ans: Share of Profit: Atul – ₹ 72,000; and Mithun – ₹ 48,000.]
Anurag Pathak Changed status to publish March 29, 2024
Solution:-
Atul’s Share = 1,20,000 × 3/5 = ₹ 72,000
Mithun’s Share = ₹ 1,20,000 × 2/5 = ₹ 48,000
Partner’s Share in Divisible Profit.
Anurag Pathak Changed status to publish April 8, 2024
