The Total solution for NCERT class 6-12
a) If interest on Capital and Partners’ salaries andinterest on drawings is charged against profit, the solution will be as:
Profit and Loss Appropriation Account
Dr.
Cr.
Particulars
Amount
₹
Profit transferred to
Profit and Loss
30,000
Tripathi’s Current Account
18,000
Chauhan’s Current Account
12,000
Partners’ Capital Account
Tripathi
Chauhan
Balance b/d
60,000
40,000
Balance c/d
Partners’ Current Account
Drawings
8,000
Interest on Capital
3,000
2,000
Interest on Drawings
600
400
Partners’ Salaries
20,400
17,600
Profit & Loss Appropriation
33,000
26,000
b) If interest on Capital and Partners’ salariesand interest on drawings is distributed out of profit, the solutionwill be as:
Partners’ Salary
Profit and Loss (Profit)
Tripathi 1,000 × 12 =
Chauhan 1,000 × 12 =
24,000
1,000
5,000
Profit Transferred to
Tripathi’s Current
1,200
Chauhan’s Current
800
31,000
3,600
6,400
Profit and Loss Appropriation
16,200
14,800