Profit And Loss Appropriations And Capital Ac

Question 1

Transfer of net profit to profit and loss appropriations

Answer 1

Fixed system -
P and l ac dr
to p and l appropriations

Fluctuating system
P and l ac dr
to p and l appropriations

Question 2

Capital contributed by partner

Answer 2

Fixed system -
cash/bank ac dr
to capital
Fluctuating system -
cash/bank ac dr
to capital

Question 3

Interest on capital providing

Answer 3

Provide
fixed system
IOC/salary/commission ac dr
to current ac
Fluctuating system
IOC/salary/commission ac dr
to capital ac

Question 4

Interest on capital or salary or commission Transfer entry

Answer 4

FIxed system same for fluctuating system
P and l Appropriations
to IOC salary Commission

Question 5

Drawings - withdrawal

Answer 5

drawings ac dr
to cash/bank/Purchase same for both systems

Question 6

Drawings Transfer entry

Answer 6

FIxed system
current ac dr
to Drawings
FLuctuating system
Capital ac dr
to Drawings

Question 7

Interest on drawings
Charging

Answer 7

fixed system
Current ac dr
to IOD
FLuctuating system
Capital ac dr
to IOD

Question 8

INterest on drawings Transfer entry

Answer 8

IOD ac dr
to P and l appropriations
both system same

Question 9

Reserves created

Answer 9

FIxed system
fluctuating system
p and l appropriations ac dr
to reserves

Question 10

Share of divisible profit

Answer 10

P and l appropriations ac dr
to current ac

p and l appropriations ac dr
to capital ac