Prepare the Profit and Loss Appropriation Account given the following information for a partnership firm.

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Here's the solution for the partnership accounting problem.

Calculate appropriations
- Interest on Capital:
  
  A's Interest on Capital $= ₹50,000 \times \frac{6}{100} = ₹3,000$
  
  B's Interest on Capital $= ₹30,000 \times \frac{6}{100} = ₹1,800$
- A's Commission:
  
  A's Commission $= ₹3,00,000 \times \frac{2}{100} = ₹6,000$
- B's Salary:
  
  B's Salary $= ₹500 \times 12 = ₹6,000$
- B's Commission:
  
  Profit before B's commission (after other appropriations) $= \text{Net Profit} - \text{Interest on Capital} - \text{A's Commission} - \text{B's Salary}$
  
  Profit before B's commission $= ₹50,000 - ₹(3,000 + 1,800) - ₹6,000 - ₹6,000$
  
  Profit before B's commission $= ₹50,000 - ₹4,800 - ₹6,000 - ₹6,000 = ₹33,200$
  
  B's Commission (after charging such commission) $= ₹33,200 \times \frac{5}{100+5} = ₹33,200 \times \frac{5}{105} = ₹1,580.95 \approx ₹1,581$
Prepare Profit and Loss Appropriation Account
\begin{array}{l r r} \multicolumn{3}{c}{\textbf{Profit and Loss Appropriation Account}} \\ \multicolumn{3}{c}{\textbf{For the year ended 31st March, 2015}} \\ \hline \textbf{Particulars} & \textbf{Amount (₹)} & \textbf{Amount (₹)} \\ \hline \text{To Interest on Capital:} & & \\ \quad \text{A} & 3,000 & \\ \quad \text{B} & 1,800 & 4,800 \\ \text{To A's Commission} & & 6,000 \\ \text{To B's Salary} & & 6,000 \\ \text{To B's Commission} & & 1,581 \\ \text{To Partners' Capital A/cs (Divisible Profit):} & & \\ \quad \text{A} & 23,714 & \\ \quad \text{B} & 7,905 & 31,619 \\ \hline \textbf{Total} & & \textbf{50,000} \\ \hline \end{array} \begin{array}{l r r} \multicolumn{3}{c}{} \\ \hline \textbf{Particulars} & \textbf{Amount (₹)} & \textbf{Amount (₹)} \\ \hline \text{By Net Profit (as per P&L A/c)} & & 50,000 \\ & & \\ & & \\ & & \\ & & \\ & & \\ & & \\ & & \\ \hline \textbf{Total} & & \textbf{50,000} \\ \hline \end{array}
Calculate Divisible Profit and distribute it
- Total appropriations $= ₹4,800 + ₹6,000 + ₹6,000 + ₹1,581 = ₹18,381$
- Divisible Profit $= \text{Net Profit} - \text{Total appropriations}$
- Divisible Profit $= ₹50,000 - ₹18,381 = ₹31,619$
- Profit sharing ratio is 3:1.
- A's Share of Profit $= ₹31,619 \times \frac{3}{4} = ₹23,714.25 \approx ₹23,714$
- B's Share of Profit $= ₹31,619 \times \frac{1}{4} = ₹7,904.75 \approx ₹7,905$
Prepare Partners' Capital Accounts
\begin{array}{l r r r r} \multicolumn{5}{c}{\textbf{Partners' Capital Accounts}} \\ \hline \textbf{Particulars} & \textbf{A (₹)} & \textbf{B (₹)} & \textbf{Particulars} & \textbf{A (₹)} & \textbf{B (₹)} \\ \hline \text{To Drawings} & 8,000 & 6,000 & \text{By Balance b/d} & 50,000 & 30,000 \\ \text{To Balance c/d} & 74,714 & 41,286 & \text{By Interest on Capital} & 3,000 & 1,800 \\ & & & \text{By Commission} & 6,000 & 1,581 \\ & & & \text{By Salary} & - & 6,000 \\ & & & \text{By P&L Appropriation A/c} & 23,714 & 7,905 \\ \hline \textbf{Total} & \textbf{82,714} & \textbf{47,286} & \textbf{Total} & \textbf{82,714} & \textbf{47,286} \\ \hline \end{array}
Final Answers:
- B's Commission: $\boxed{₹1,581}$
- Divisible Profit:
  
  A's Share: $\boxed{₹23,714}$
  
  B's Share: $\boxed{₹7,905}$
- Closing Capital Balances:
  
  A's Capital: $\boxed{₹74,714}$
  
  B's Capital: $\boxed{₹41,286}$

Prepare the Profit and Loss Appropriation Account given the following information for a partnership firm.

Step-by-step solution

Calculate appropriations

Prepare Profit and Loss Appropriation Account

Calculate Divisible Profit and distribute it

Prepare Partners' Capital Accounts

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