{"id":135473,"date":"2023-03-31T15:59:03","date_gmt":"2023-03-31T10:29:03","guid":{"rendered":"https:\/\/www.mapsofindia.com\/my-india\/?p=135473"},"modified":"2023-03-31T15:59:03","modified_gmt":"2023-03-31T10:29:03","slug":"akhil-and-nikhil-were-partners-sharing-profits-and-losses-in-the-ratio-of-3-2-their","status":"publish","type":"post","link":"https:\/\/www.mapsofindia.com\/my-india\/quiz\/akhil-and-nikhil-were-partners-sharing-profits-and-losses-in-the-ratio-of-3-2-their","title":{"rendered":"Akhil and Nikhil were partners sharing profits and losses in the ratio of 3: 2. Their&#8230;&#8230;&#8230;&#8230;&#8230;."},"content":{"rendered":"<h2>Question :Akhil and Nikhil were partners sharing profits and losses in the ratio of 3: 2. Their fixed capitals were % 1,00,000 and % 80,000 respectively. Interest on capital was agreed @ 6% p.a. Nikhil was to be allowed an annual salary of % 9,200, During the year 2021-22, the net profit prior to the calculation of interest on capital but after charging Nikhil\u2019s salary amounted to. \u00a5 1,20,000. Prepare Profit and Loss Appropriation Account of the firm for the year ending 31%* March, 2022.<\/h2>\n<h3>The correct answer is -Calculation of Interest on Capital:<\/h3>\n<h3>Akhil\u2019s Interest on Capital = 6% of % 1,00,000 = % 6,000 Nikhil\u2019s Interest on Capital = 6% of % 80,000 = % 4,800<\/h3>\n<h3>Calculation of Nikhil\u2019s Salary:<\/h3>\n<h3>Nikhil\u2019s Salary = % 9,200<\/h3>\n<h3>Calculation of Profit and Loss Appropriation Account:<\/h3>\n<h3>Net Profit before Interest on Capital and Salary = % 1,20,000<\/h3>\n<h3>Less: Nikhil\u2019s Salary = % 9,200<\/h3>\n<h3>Net Profit before Interest on Capital = % 1,10,800<\/h3>\n<h3>Akhil\u2019s Interest on Capital = % 6,000<\/h3>\n<h3>Nikhil\u2019s Interest on Capital = % 4,800<\/h3>\n<h3>Profit available for appropriation = % 1,00,000<\/h3>\n<h3>Less: Transfer to General Reserve = % 12,000<\/h3>\n<h3>Remaining Profit for Appropriation = % 88,000<\/h3>\n<h3>Akhil\u2019s Share of Profit (3\/5th) = % 52,800<\/h3>\n<h3>Nikhil\u2019s Share of Profit (2\/5th) = % 35,200<\/h3>\n<h3>Add: Interest on Capital to be paid = % 10,800<\/h3>\n<h3>Add: Nikhil\u2019s Salary = % 9,200<\/h3>\n<h3>Total Profit and Loss Appropriation = % 1,03,000<\/h3>\n<h3>Therefore, the Profit and Loss Appropriation Account of Akhil and Nikhil for the year ending 31st March 2022 will be as follows:<\/h3>\n<table>\n<thead>\n<tr>\n<th>Particulars<\/th>\n<th>Amount (in Rs.)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Net Profit before Interest on Capital and Salary<\/td>\n<td>1,20,000<\/td>\n<\/tr>\n<tr>\n<td>Less: Nikhil\u2019s Salary<\/td>\n<td>9,200<\/td>\n<\/tr>\n<tr>\n<td>Net Profit before Interest on Capital<\/td>\n<td>1,10,800<\/td>\n<\/tr>\n<tr>\n<td>Appropriations:<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>Akhil\u2019s Interest on Capital<\/td>\n<td>6,000<\/td>\n<\/tr>\n<tr>\n<td>Nikhil\u2019s Interest on Capital<\/td>\n<td>4,800<\/td>\n<\/tr>\n<tr>\n<td>Transfer to General Reserve<\/td>\n<td>12,000<\/td>\n<\/tr>\n<tr>\n<td>Remaining Profit for Appropriation<\/td>\n<td>88,000<\/td>\n<\/tr>\n<tr>\n<td>Akhil\u2019s Share of Profit (3\/5th)<\/td>\n<td>52,800<\/td>\n<\/tr>\n<tr>\n<td>Nikhil\u2019s Share of Profit (2\/5th)<\/td>\n<td>35,200<\/td>\n<\/tr>\n<tr>\n<td>Add: Interest on Capital to be paid<\/td>\n<td>10,800<\/td>\n<\/tr>\n<tr>\n<td>Add: Nikhil\u2019s Salary<\/td>\n<td>9,200<\/td>\n<\/tr>\n<tr>\n<td>Total Profit and Loss Appropriation<\/td>\n<td>1,03,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Question :Akhil and Nikhil were partners sharing profits and losses in the ratio of 3: 2. Their fixed capitals were % 1,00,000 and % 80,000 respectively. Interest on capital was agreed @ 6% p.a. Nikhil was to be allowed an annual salary of % 9,200, During the year 2021-22, the net profit prior to the [&hellip;]<\/p>\n","protected":false},"author":21830,"featured_media":132233,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12119],"tags":[],"class_list":{"0":"post-135473","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-quiz"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/135473","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/users\/21830"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/comments?post=135473"}],"version-history":[{"count":1,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/135473\/revisions"}],"predecessor-version":[{"id":135475,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/135473\/revisions\/135475"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/media\/132233"}],"wp:attachment":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/media?parent=135473"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/categories?post=135473"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/tags?post=135473"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}