Question:medium
Ravi and Kiran commenced partnership business on 01.04.2024 with capitals of ₹ 1,50,000 and ₹ 1,00,000 respectively. Their profit sharing ratio is \(3 : 2\) respectively.
They earned a profit of ₹ 50,000 for the year, before allowing :
a) Interest on capital at 10% per annum.
b) Interest on drawings : Ravi ₹ 4,000 and Kiran ₹ 2,000.
c) Commission payable to Ravi ₹ 3,000 per annum.
d) Salary payable to Kiran ₹ 8,000 per annum.
Prepare Profit and Loss Appropriation Account for the year ended 31.03.2025.
Ravi and Kiran commenced partnership business on 01.04.2024 with capitals of ₹ 1,50,000 and ₹ 1,00,000 respectively. Their profit sharing ratio is \(3 : 2\) respectively.
They earned a profit of ₹ 50,000 for the year, before allowing :
a) Interest on capital at 10% per annum.
b) Interest on drawings : Ravi ₹ 4,000 and Kiran ₹ 2,000.
c) Commission payable to Ravi ₹ 3,000 per annum.
d) Salary payable to Kiran ₹ 8,000 per annum.
Prepare Profit and Loss Appropriation Account for the year ended 31.03.2025.
They earned a profit of ₹ 50,000 for the year, before allowing :
a) Interest on capital at 10% per annum.
b) Interest on drawings : Ravi ₹ 4,000 and Kiran ₹ 2,000.
c) Commission payable to Ravi ₹ 3,000 per annum.
d) Salary payable to Kiran ₹ 8,000 per annum.
Prepare Profit and Loss Appropriation Account for the year ended 31.03.2025.
Show Hint
Always double-check if the salary or commission is given "per month" or "per annum". Here, it is given as "per annum," so no multiplication by 12 is needed.
Updated On: Mar 16, 2026
Show Solution
Solution and Explanation
Was this answer helpful?
0
Top Questions on Partnership Accounting
- Anitha and Sunitha are equal partners. Their Balance Sheet on 31.03.2025 is as under :
Debtors ₹ 30,000 ; Bills Receivable ₹ 12,000 ; Computers ₹ 25,000 ; Machinery ₹ 45,000 ; Land ₹ 85,000 ; and Unrecorded investment ₹ 3,000
b) Liabilities are paid in full.
c) Cost of dissolution amounted to ₹ 6,000.
Prepare :
i) Realisation Account,
ii) Partners' Capital Accounts and
iii) Bank Account.
- KSEAB Class XII - 2026
- Accountancy
- Partnership Accounting
- Govind and Sudeep are partners sharing profits and losses in the ratio of \(3 : 1\) respectively. Their Balance sheet as on 31.03.2025 is as follows :
Balance Sheet as on 31.03.2025
On 01.04.2025, they admitted Tarun into partnership on following terms :
a) Tarun should bring in ₹ 30,000 as capital for \(1/5^{\text{th}}\) share and ₹ 10,000 towards goodwill [As per A.S. -- 26].
b) Goodwill amount is withdrawn by old partners.
c) Depreciate furniture at 5%.
d) Appreciate building value by 10%.
e) Machinery revalued at ₹ 27,000.
Prepare :
i) Revaluation Account,
ii) Partners' Capital Accounts and
iii) New Balance Sheet of firm on 01.04.2025.
- KSEAB Class XII - 2026
- Accountancy
- Partnership Accounting
- Geetha, Latha and Sangeetha are partners sharing profits and losses in the ratio of \(5 : 3 : 2\) respectively. Latha retires from the firm. Geetha and Sangeetha decided to share future profits in the ratio of \(3 : 2\).
Calculate Gaining Ratio of Geetha and Sangeetha.
- KSEAB Class XII - 2026
- Accountancy
- Partnership Accounting
- Anil, Vishal and Sunil are partners sharing profits and losses in the ratio of \(4 : 3 : 3\). Their capitals on 01.04.2025 are ₹ 1,00,000, ₹ 80,000 and ₹ 50,000 respectively.
Vishal died on 31.12.2025. The partnership deed provides the following :
a) Interest on capital at 12% per annum.
b) Salary to Vishal ₹ 2,000 per month.
c) Vishal's share of goodwill ₹ 14,000 [as per A.S. -- 26].
d) Vishal's share of accrued profit upto the date of death, based on previous year profit.
Firm's previous year profit was ₹ 36,000.
Prepare Vishal's Executors Account.
- KSEAB Class XII - 2026
- Accountancy
- Partnership Accounting
- Want to practice more? Try solving extra ecology questions todayView All Questions