Home
Class 12
ACCOUNTS
According to Profit and Loss Account, th...

According to Profit and Loss Account, the net profit for the year is Rs.1,50,000. The total interest on partner's capital is Rs.18,000 and interest on partner's drawings is Rs.2,000. The net profit as per Profit and Loss Appropriation Account will be :

A

Rs.1,66,000

B

Rs.1,70,000

C

Rs.1,30,000

D

Rs.1,34,000

Text Solution

Verified by Experts

The correct Answer is:
D
Doubtnut Promotions Banner Mobile Dark
|

Topper's Solved these Questions

  • ACCOUNTING FOR PARTNERSHIP FIRMS - FUNDAMENTALS

    DK GOEL|Exercise Multiple Choice Questions (iv) Calculation Accounts of Partners (HOTS)|15 Videos
  • ACCOUNTING FOR PARTNERSHIP FIRMS - FUNDAMENTALS

    DK GOEL|Exercise Multiple Choice Questions (v) Interest on Capital (HOTS)|6 Videos
  • ACCOUNTING FOR PARTNERSHIP FIRMS - FUNDAMENTALS

    DK GOEL|Exercise Multiple Choice Questions (ii) Partnership Deed (HOTS)|24 Videos
  • ACCOUNTING RATIOS

    DK GOEL|Exercise Multiple Choice Questions (Profitability Ratios)|13 Videos

Similar Questions

Explore conceptually related problems

A and B are partners. According to Profit and Loss Account, the net profit for the year is Rs.2,00,000. The total interest on partner's drawings is Rs.1,000. A's salary is Rs.40,000 per year and B's salary is Rs.3,000 per month. The net profit as per Profit nad Loss Appropriation Account will be :

According to Profit and Loss Account, the net profit for the year is Rs.1,40,000. The total interest on partner's capital is Rs.8,000 and a partner is to be allowed commission of Rs.5,000. The total interes on partner's drawings is Rs.1,200. The net profit as per Profit and Loss Appropriation Account will be :

Knowledge Check

  • Insurance Premium paid during the year is Rs 10,000 and Opening Prepaid insurance is Rs 3,000. Insurance Expenses shown in the Profit and Loss Account will be

    A
    `Rs 13,000`.
    B
    `Rs 7,000`.
    C
    `Rs 3,000`.
    D
    `Rs 10,000`.
  • Insurance Premium paid during the year is Rs 10,000 and Opening Prepaid insurance is Rs 3,000. Insurance Expenses shown in the Profit and Loss Account will be

    A
    `Rs 13,000`.
    B
    `Rs 7,000`.
    C
    `Rs 3,000`.
    D
    `Rs 10,000`.
  • Similar Questions

    Explore conceptually related problems

    According to Profit and Loss Account, the net profit for the year is Rs.4,20,000. Salary of a partner is Rs.5,000 per month and the commission of another partner is Rs.10,000. The interest on drawings of partners is Rs.4,000. The net profit as per Profit and Loss Appropriation Account will be :

    X and Y are partners in a firm sharing profit and losses in the ratio of 3 : 2 with capitals of RS.1,20,000 and RS.80,000 respectively. Interest on capital is allowed @ 10%. They admit Z into the partnership with effect from 1st January, 2019 on the following terms: (i) Z is to bring in RS.10,000 for his share of cash. (ii) Z is to contribute RS.1,25,000 as his share of capital. (iii) Partners' capital will carry interest @ 12% p.a. (iv) New profit-sharing ratio of X, Y and Z will be 9 : 6 : 4. (v) X will be entitled to 5% commission on the net profit. (vi) The profit for the year ended 31st March, 2019 before providing for X's commission and interest on partners' capital amounted to RS.80,000. Prepare profit and Loss Appropriation Account for the year ended 31st March, 2019.

    A and B are partners A's capital is Rs. 1,00,000 and B's capital is Rs. 60,000 interest on capital is payable @6% p.a B is get salary of Rs, 3,000 per profit for the year is Rs. 80,000 . Prepane profit and Loss appropriation account.

    Simran and reema are partners sharing profit in the ratio of 3:2 their capital as on 31st March 2018 were Rs. 2,00,000 each wheras curent Account had balance of RS. 50,000 and Rs. 25,000 respectively interest is to be allowed @5% p.a on balance in capital Accounts . the firm earned net profit of Rs. 3,00,000 for the year ended 31st MArch ,2019 Pass the journal enteris for interest on capital and distribution of profit Also prepare profit and Loss appropriation Account for the year .

    Ramesh and Suresh were partners in a firm sharing profits in the ratio of their capitals contributed on commencement of business which were Rs. 80,000 and Rs. 60,000 respectively. The firm started business on April 1, 2016. According to the partnership agreement, interest on capital and drawings are 12% and 10% p.a., respectively. Ramesh and Suresh are to get a monthly salary of Rs. 2,000 and Rs. 3,000, respectively. The profits for year ended March 31, 2017 before making above appropriations was Rs. 1,00,300. The drawings of Ramesh and Suresh were Rs. 40,000 and Rs. 50,000, respectively. Interest on drawings amounted to Rs. 2,000 for Ramesh and Rs. 2,500 for Suresh. Prepare Profit and Loss Appropriation Account and partners’ capital accounts, assuming that their capitals are fluctuating.

    X, Y and Z are partners in a firm. At the time of division of profit for the year, there was dispute between the partners. Profit before interest on partner's capital was Rs.6,000 and Y determined interest @24% p.a. on his loan of Rs.80,000. There was no agreement on this point. Calculate the amount payable to X, Y and Z respectively.