The document contains the solution to multiple accounting sums involving the preparation of Profit and Loss Appropriation Accounts and Capital Accounts of partners. Specifically, it provides the accounting entries to distribute profit among partners based on their profit sharing ratios, deduct interest on capital and drawings, and transfer the final balances to partners' capital accounts. The solutions show the detailed workings and calculations involved in each step of the process.

1. Ms. K. KALAI SELVI
Assistant Professor of Commerce
PG & Research Department of Commerce
Bon Secours College for Women, Thanjavur

2. P & L Appropriation
Account

3. Specimen of Profit & Loss Appropriation A/c

4. Sum No.17

5. (Answer for Sum No.17)
Profit & Loss Appropriation A/c
Date Particulars
Amount
Rs.
Date Particulars
Amount
Rs.
31.12.2008
31.12.2008
31.12.2008
To Interest on Capital:
A’s Capital Account 1,800
B’s Capital Account 600
-----
,, B’s Salary
,, Transfer of Profit
A’s Capital A/c
(6750 / 2) 3375
B’s Capital A/c
(6750 / 2) 3375
--------
2,400
3,000
6,750
31.12.2008
31.12.2008
By P & L A/c
Net Profit b/d
,, Interest on Drawings:
A 100
B 50
-----
12,000
150
12,150 12,150
Working Notes:
Interest on Capital (A) = Rs.30,000 x 6/100 = Rs. 1,800
Interest on Capital ( B) = Rs.10,000 x 6/100 = Rs. 600

6. Capital Accounts
Date Particulars
A’s
Capital
B’s
Capital Date Particulars
A’s
Capital
B’s
Capital
31.12.2008
31.12.2008
31.12.2008
To Drawings
,, Interest on Drawings
,, Balance c/d
3,000
100
32,075
2,000
50
14,925
01.01.2008
31.12.2008
31.12.2008
31.12.2008
By Balance b/d
,, Interest on Capital
,, B’s Salary
,, Transfer of Profit
30,000
1,800
-
3,375
10,000
600
3,000
3,375
35,175 16,975 35,175 16,975
01.01.2009 By Balance b/d 32,075 14,925

7. Sum No.18

8. (Answer for Sum No.18)
Profit & Loss Appropriation A/c
Date Particulars
Amount
Rs.
Date Particulars
Amount
Rs.
31.12.2008
31.12.2008
31.12.2008
To Interest on Capital:
Ajay’s Capital A/c 3,000
(50,000 x 6 /100 )
Vijay’s Capital A/c 1,800
(30,000 x 6 /100 ) -----
,, Vijay’s Salary
,, Transfer of Profit
Ajay’s Capital A/c
(5,200 x 3 / 5) 3,120
Vijay’s Capital A/c
5,200 x 2 / 5) 2,080
--------
4,800
2,500
5,200
31.12.2008
31.12.2008
By P & L A/c
Net Profit b/d 12,500
12,500 12,500

9. Capital Accounts
Date Particulars
Ajay’s
Capital
Vijay’s
Capital Date Particulars
Ajay’s
Capital
Vijay’s
Capital
31.12.2008 To Balance c/d 56,120 36,380 01.01.2008
31.12.2008
31.12.2008
31.12.2008
By Balance b/d
,, Interest on Capital
,, Salary
,, Transfer of Profit
50,000
3,000
-
3,120
30,000
1,800
2,500
2,080
56,120 36,380 56,120 36,380
01.01.2009 By Balance b/d 56,120 36,380

10. Sum No.19

11. (Answer for Sum No.19)
Profit & Loss Appropriation A/c
Date Particulars
Amount
Rs.
Date Particulars
Amount
Rs.
31.12.2008
31.12.2008
To Interest on Capital:
A’s Capital A/c 10,000
(2,00,000 x 5 /100 )
B’s Capital A/c 5,000
(1,00,000 x 5 /100 ) ------- -----
,, Transfer of Profit
A’s Capital A/c 40,000
(80,000 / 2 )
B’s Capital A/c 40,000
(80,000 / 2 ) ------------
15,000
80,000
31.12.2008 By P & L A/c
Net Profit b/d 95,000
95,000 95,000

12. Sum No.20

13. (Answer for Sum No.20)
Profit & Loss Appropriation A/c
Date Particulars
Amount
Rs.
Date Particulars
Amount
Rs.
31.12.2008 To Net Loss b/d
,, Interest on Capital:
Karthik 1,800
Saravanan 1,200
--------
21,216
3,000
31.12.2008
31.12.2008
,, Interest on Drawings:
Karthik 120
Saravanan 96
-----
,, Transfer of Loss:
Karthik
(24,000 x 3 / 4)
Saravanan
(24,000 x 1 / 4)
216
18,000
6,000
24,216 24,216

14. Capital Accounts
Date Particulars
Karthik’s
Capital
Saravanan’s
Capital Date Particulars
Karthik’
s Capital
Saravanan’s
Capital
31.12.2008
31.12.2008
31.12.2008
31.12.2008
To Drawings
,, Interest on Drawings
,, Transfer of Loss
,, Balance c/d
6,000
120
18,000
13,680
4,800
96
6,000
14,304
01.01.2008
31.12.2008
By Balance b/d
,, Interest on Capital
36,000
1,800
24,000
1,200
37,800 25,200 37,800 25,200
01.01.2009 By Balance b/d 13,680 14,304

15. Sum No.21

16. (Answer for Sum No.21)
Profit & Loss Appropriation A/c
Date Particulars
Amount
Rs.
Date Particulars
Amount
Rs.
31.12.2008
31.12.2008
31.12.2008
To Interest on Capital:
Amar 6,000
Akbar 4,500
---------
,, Salary to Akbar
,, Transfer of Profit
Amar 17,820
Akbar 11,880
----------
10,500
24,000
29,700
31.12.2008
31.12.2008
By P & L A/c
Net Profit b/d
,, Interest on Drawings:
Amar 420
Akbar 300
-----
63,480
720
64,200 64,200
Workings:
Calculationof Interest on Capital:
Amar = 1,20,000 x 5 /100 = 6,000 Akbar = 90,000 x 5 /100 = 4,500
Calculationof Profit Share:
Amar = 29,700 x 3 / 5 = 17,820 Akbar = 29,700 x 2 / 5 = 11,880

17. Capital Accounts
Date Particulars
Amar’s
Capital
Akbar’s
Capital Date Particulars
Amar’s
Capital
Akbar’s
Capital
31.12.2008
,,
,,
To Drawings
,, Interest on Drawings
,, Balance c/d
18,000
420
1,25,400
36,000
300
94,080
01.01.2008
31.12.2008
31.12.2008
31.12.2008
By Balance b/d
,, Salary
,, Interest on Capital
,, Transfer of Profit
1,20,000
-
6,000
17,820
90,000
24,000
4,500
11,880
1,43,820 1,30,380 1,43,820 1,30,380
01.01.2009 By Balance b/d 1,25,400 94,080

18. Sum No.22

19. (Answer for Sum No.22)
Profit & Loss Appropriation A/c
Date Particulars
Amount
Rs.
Date Particulars
Amount
Rs.
31.12.2008
31.12.2008
31.12.2008
To Interest on Capital:
Kavitha 4,000
Sumathi 3,000
---------
,, Sumathi’s Capital a/c
(Salary)
,, Transfer of Profit
Kavitha 11,880
Sumathi 7,920
----------
7,000
16,000
19,800
31.12.2008
31.12.2008
By P & L A/c
Net Profit b/d
,, Interest on Drawings:
Kavitha 280
Sumathi 200
-----
42,320
480
42,800 42,800
Workings:
Calculationof Interest on Capital:
Kavitha = 80,000 x 5 /100 = 4,000 Sumathi = 60,000 x 5 /100 = 3,000
Calculationof Profit Share:
Kavitha = 19,800 x 3 / 5 = 11,880 Sumathi = 19,800 x 2 / 5 = 7,920

20. Capital Accounts
Date Particulars
Kavitha’s
Capital
Sumathi’s
Capital Date Particulars
Kavitha’s
Capital
Sumathi’s
Capital
31.12.2008
,,
,,
To Drawings
,, Interest on
Drawings
,, Balance c/d
12,000
280
83,600
24,000
200
62,720
01.01.2008
31.12.2008
31.12.2008
31.12.2008
By Balance b/d
,, Salary
,, Interest on Capital
,, Transfer of Profit
80,000
-
4,000
11,880
60,000
16,000
3,000
7,920
95,880 86,920 95,880 86,920
01.01.2009 By Balance b/d 83,600 62,720

21. Sum No.23

22. (Answer for Sum No.23)
Working Notes:
(i) Calculationof Intereston Drawings :
Calculation of average period = 11 months + 0 months = 11 months
Calculation of average period = 11 / 2
= 5.5 months
Interest on Drawings (Suriyan) = Rs.24,000 x 6/100 x 5.5/12 = Rs. 660
Profit & Loss Appropriation A/c
Date Particulars
Amount
Rs.
Date Particulars
Amount
Rs.
31.12.2008 To Transfer of Profit:
Chandran Capital A/c
Surian Capital A/c
25,546.50
23,113.50
31.12.2008
31.12.2008
By P & L A/c
Net Profit b/d
,, Interest on Drawings
Surian
48,000.00
660.00
48,660.00 48,660.00

23. Working Notes:
(ii) Calculation of Profit Sharing :
Up to 30.09.2008 Partners shared their profit equally
From 01.10.2008 onwards they agree to share their profit 3:2
(Hence we have to distribute the first 9 months profit in equal ratio and the remaining 3 months profit in 3:2 ratio)
Particulars Ratio
Chandran Surian
Profit for first 9 months :
( Rs.48,660 x 9/12 ) = 36,495
[36,495 / 2 = Rs.18,247.50]
Profit for remaining 3 months:
( Rs. 48,660 x 3/12 ) = 12,165
[ 12,165 x 3/ 5 = 7,299
12,165 x 2/ 5 = 4,866]
Equal
3:2
18,247.50
7,299
18,247.50
4,866
25,546.50 23,113.5

24. Capital Accounts
Date Particulars
Chandran’s
Capital
Surian’s
Capital Date Particulars
Chandran’s
Capital
Surian’s
Capital
31.12.2008
31.12.2008
31.12.2008
To Drawings
,, Interest on Drawings
,, Balance c/d
-
-
3,25,546.50
24,000.00
660.00
1,98,453.50
01.01.2008
30.09.2008
31.12.2008
31.12.2008
By Balance b/d
,, Additional Capital
,, Transfer of Profit
2,00,000.00
1,00,000.00
25,546.50
2,00,000.00
-
23,113.50
3,25,546.50 2,23,113.50 3,25,546.50 2,23,113.50
01.01.2009 By Balance b/d 3,25,546.50 1,98,453.50