Calculate net profit as per P & L A/c for the year ending 31 March, 2022 from the following information :
share of profit transferred to Capital A/c's of partners :
Ram Rs. 7,000
Shyam Rs. 3,500
Interest on capital :
Ram Rs. 1,500
Shyam Rs. 500
Interest on Drawings :
Ram Rs. 300
Shyam Rs. 200
Ram's salary Rs. 1,000
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Rs. 13,000
The net profit as per the Profit and Loss Account is the amount brought into the Profit and Loss Appropriation Account. Work backwards from what the appropriation account distributed: add the appropriations made to partners (interest on capital, salary) and the profit shared, and deduct the interest on drawings, which was a gain credited to the account.
Share of profit = Rs. 7,000 + Rs. 3,500 = Rs. 10,500
Add: interest on capital = Rs. 1,500 + Rs. 500 = Rs. 2,000
Add: Ram's salary = Rs. 1,000
Less: interest on drawings = Rs. 300 + Rs. 200 = Rs. 500
Net profit as per P & L A/c = Rs. 10,500 + Rs. 2,000 + Rs. 1,000 − Rs. 500 = Rs. 13,000
NCERT (2026-27 edition): |