Reema and Seema are partners sharing profits equally. The Partnership Deed provides that both Reema and Seema will get a monthly salary of ₹ 15,000 each
Reema and Seema are partners sharing profits equally. The Partnership Deed provides that both Reema and Seema will get a monthly salary of ₹ 15,000 each, Interest on Capital will be allowed @ 5% p.a. and Interest on Drawings will be charged @ 10% p.a. Their capitals were ₹ 5,00,000 each and drawings during the year were ₹ 60,000 each.
The firm incurred a net loss of ₹ 1,00,000 during the year ended 31st March 2023.
Prepare Profit and Loss Appropriation Account for the year ended 31st March 2023.
[Ans: Loss – ₹ 94,000; Reema’s Share – ₹ 47,000; Seema’s Share – ₹ 47,000.]
Anurag Pathak Changed status to publish April 10, 2024
Solution:-
Instructions:-
In the case of Loss, Interest on the partner’s capital, salary, and commission are not charged. As these items are appropriated out of profits. Thus in the case of loss, such items can not be provided.
Anurag Pathak Changed status to publish March 17, 2024
Salary of partner’s are not charged in the case of loss. as salary, commission and interest on capital are appropriated out of profits in the absence of any given information.
Why salary not charged here tell me please??