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SERIES
  • 7/2/2025
Transcript
00:00:00Partnership and LLP Accounts. Introduction and LLP Accounts CA Foundation Book Clerk
00:00:28to the Samsung number. Just listen to the lecture and take the key points as your notes, right?
00:00:40Now, actually, in partnership deal, salary, sharing of profits and losses or interest
00:00:54on capital and loan. Let's see. No partner has the right to salary. Salary, unless they have
00:01:07the clear agreement, the deal agreement. Interest on capital is not applicable. But in case,
00:01:22partner's loan, partner's loan, you have 6% interest. And profit and loss, equally shared.
00:01:35Salary, no. And interest on capital, no. Drawings kind of interest, partners loan, then if rate
00:01:45is not given 6%, rate given, profit and loss are to be shared equally. Okay. In the absence
00:01:50of an agreement, interest and salary may be paid to the partner only if there is a profit.
00:02:03profit and loss. Interest and salary. Firm, what do we do? What do we do? What do we do?
00:02:12Share it. That is called P&L appropriation. Sharing. When we distribute the salary, not equal share. Like capital
00:02:17put on that. Excess capital put on that. Excess capital put on that. Excess capital put on that. So,
00:02:30it is going to compensate. Interest and capital. Add the interest. As well as commissions,
00:02:42If you have a salary and interest, if you have a P&L appropriation account, the amount distributed to the partners is 10,000.
00:02:53The salary is $1,200, $6,200.
00:02:58Interest and capital is $1,200.
00:03:02If the profit is insufficient, then to the extent of amount available, the salary will be shed.
00:03:09Suppose if the net loss is 0, then nothing is available.
00:03:13These are the key points, act.
00:03:16Here is an example.
00:03:22In the example, we can share a clarification.
00:03:28Let's see, what does it mean?
00:03:33A and B commenced business in partnership on 1st January 2022.
00:03:46No partnership agreement was made either oral or written.
00:03:51Contributed 40 and 10 respectively as a capital.
00:03:55Okay.
00:03:56A also advanced 20,000 on July 2022.
00:04:00That was 1st January 2022.
00:04:04Started with the capital by A and B of rupees 40,000 and 10,000.
00:04:13A also advanced 20,000 on July 2022.
00:04:14Additional capital.
00:04:15On 1st July 2022.
00:04:16Additional capital.
00:04:17On 1st July 2022.
00:04:18Additional capital.
00:04:19A met with an accident on 1st April 2022.
00:04:20And could not attend the partnership business up to 30th June 2022.
00:04:21And could not attend the partnership business up to 30th June 2022.
00:04:22So, A met with an accident on April 2022.
00:04:26also, A met with an accident on 1st April 2022.
00:04:30So, A met with an accident on 1st April 2022.
00:04:34Additional capital.
00:04:35Inuit of the order.
00:04:36Additional capital.
00:04:38And could not attend the partnership business up to 30th June 2022.
00:04:41So, A met with an accident on 1st April 2022.
00:04:47could not attend the partnership business upto 30th June 2022. So, what business is
00:04:54going on in April 2022, 30th June 2022, as he was in hospital, like our ill health.
00:05:04The profits for the year ended, 31st March and 31st December 2022, the profit earned
00:05:13to be 50,600 eventually, 50,600. Disputes have been arisen between them for sharing the profits,
00:05:23in the 50,600 every share profit. Now question, one after one, A claims he should be given
00:05:32interest at 10% per annum, A would a claim? Claim of A, interest on capital, okay?
00:05:43A, 10% demand. Profit should be distributed in proportion of capital. Profit as well as capital
00:05:51ratio, A demand. B, what does that mean? Net profit should be shared equally. He should
00:06:02be allowed a remuneration of thousand per month during the period of A sales. A,
00:06:06you are required to settle the dispute between them and distribute the profits accordingly.
00:06:14of the law. State reasons for your answers. Act, what does it say? If deed is silent, then you
00:06:15have to settle the dispute between them and distribute the profits according to the law. State reasons
00:06:19for your answers. Act, what does it say? If deed is silent, deed is silent, okay? Silent. You
00:06:20are supposed to mean interest at the capital.
00:06:21interest on capital loan should be given at the rate of 6%, return for capital loan to get
00:06:24loan. You are required to settle the dispute between them and distribute the profits according to
00:06:25the law. State reasons for your answers. Act, what does it say? If deed is silent, deed is silent,
00:06:29You are required to settle the dispute between them and distribute the profits according to the law. State reasons for your answers.
00:06:38If the deed is silent, you are interested in capital. Profits and losses are shared equally. Salary will not be payable.
00:06:56How do you share? This is the additional capital. If you are interested in the loan, you will be eligible for 6% interest. If the deed is silent, the loan will be eligible for 6% interest.
00:07:26If you are interested in the loan, if you are interested in the loan, interest on loan, interest on loan.
00:07:41That 20,000 is assumed to be the loan for that 6% interest rate will be applicable from the period of lending.
00:07:5017th Lendhu, 31st December, 6 months.
00:07:55Okay.
00:07:57Now, what is the value?
00:08:00600,000.
00:08:02Balance after this.
00:08:04Only shared between A and B equally. A will get 25,000 and B will get 25,000.
00:08:15Hope so you could not understand.
00:08:16In the preliminary chapter, the first chapter, profit and loss, the judges are the partners.
00:08:26So, first example is explained by the provisions.
00:08:31Make the notes of these provisions also, right?
00:08:33Example 1 is over.
00:08:34Example 1 is over.
00:08:36Exam point of view in the maximum
00:08:42you will get past adjustments or rectification errors like questions.
00:08:47We will move on to the next example.
00:08:57Okay.
00:08:59Example number 2.
00:09:02Now, A, B and C are partners in a firm sharing profits and losses in the ratio of 2 to 3 to 5.
00:09:22Their fixed capitals are 50 lakhs, 30 lakhs, 60 lakhs respectively.
00:09:28For the year-ended 22, interest on capital was credited to them 12% instead of 10%.
00:09:35Okay.
00:09:36Add to one-thru percentage interest, deed, put it in place.
00:09:39Now, C, what should be the correct amount, interest and capital?
00:09:50Correct amount.
00:09:51What should be the correct amount, interest and capital?
00:10:05Correct amount.
00:10:06How much is the correct amount?
00:10:11A, B, C.
00:10:14will get the interest at the rate that they have agreed, probably that 10 percentage may
00:10:22be assumed to be the amount available in T.
00:10:25A will get 1 and half lakhs interest, B will get 3 lakhs interest and C will get 6 lakhs
00:10:36interest.
00:10:38But interest on capital they have done wrongly, wrong amount, incorrect one.
00:10:4712 percent put here, 50 lakhs put here 12 percentage, 1 lakh 80 thousand, 12 percentage
00:10:57on 30 lakhs, 3 lakhs 60, for C, 60 lakhs in sooner, 7 lakhs 20.
00:11:05If we have to rectify this, we need to adjust the past, necessary, or error if there is
00:11:13available, how can you rectify.
00:11:15Actually, interest and capital revenue for the partners, we have to credit for the partners.
00:11:21We have to debit that.
00:11:23But we have to debit that.
00:11:29We have to debit that.
00:11:31We have to debit that.
00:11:32If you are not going to do it, you will do it.
00:11:35If you are not going to do it, you will do it.
00:11:37You will do it.
00:11:38You will do it.
00:11:39If you are not going to do it, what is the ultimate value?
00:11:4430,000 should be debited for A second, isn't it?
00:11:53Clear.
00:11:54Clear.
00:11:55And B quorum both, 60,000 should be debited and C quorum both, 1,20,000 should be credited.
00:12:09Clear.
00:12:10Clear.
00:12:11Okay.
00:12:12Okay.
00:12:13Okay.
00:12:14So, 3,000 should be debited.
00:12:16So, debited, debited, debited.
00:12:18Clear.
00:12:193,000 should be debited.
00:12:20So, debited, debited, debited.
00:12:21Clear.
00:12:223,000 should be debited.
00:12:23So, debited, debited.
00:12:24Clear.
00:12:25Clear.
00:12:263,000 should be debited.
00:12:27This one is not enough.
00:12:29This one is not enough.
00:12:30This one is not enough.
00:12:31What is the total value, sir?
00:12:34Total value.
00:12:351 and a half lakhs, 3 lakhs, 6 lakhs, 10.5 lakhs is the correct amount.
00:12:43But, the other one is, 180, 360 plus 720, 12 lakhs, where are you?
00:12:5212 lakhs, 60.
00:12:5412 lakhs, 60,000 rupees are debited.
00:12:56P&L appropriation account.
00:12:58That's what you can do.
00:12:59Okay.
00:13:00Whatever the profit may be, 12 lakhs, 60,000 are debited, debit, debited, debited, debited,
00:13:12partners account credit, 12.6, 12.6, credit, credit, credit, credit, credit, credit.
00:13:17I assume the net profit being only 12.6.
00:13:20I am not aware about the exact net profit.
00:13:22I am not aware about the exact net profit.
00:13:23I am not aware of the exact net profit.
00:13:24So, this is the interest on partners.
00:13:26This is the interest on partners capital.
00:13:29If this is the net profit, you can share.
00:13:33If this is now income, you can share.
00:13:34Here are your money.
00:13:36You have $1.8, $3.6, $7.2, $9.1.
00:13:37You can share your profit.
00:13:38If this is the burden of 1,000 and $7.2, you can share the value.
00:13:40You can share your profit.
00:13:41Sorry.
00:13:42Net profit, $0.5,000 are debited.
00:13:43I will be able to share $1.8,000.
00:13:44Because, the net profit is now $1.8,000.
00:13:46If this is $0.8,000, $1.8,000.
00:13:48I want to share the balance.
00:13:49Here's the price.
00:13:50So, if the net profit is near the net profit.
00:13:512 is to 3 is to 5 is to share. For example, our net profit is 7.2 which is wrong. Your net
00:14:09profit assumed to be 12.6 lakhs. It is not 12.6. It is only 10.5 lakhs. It is 10.5 lakhs.
00:14:18Your net profit will increase. Is that no? So, 2.1 lakhs. You have 12.6 lakhs.
00:14:3410.5 lakhs. Debit. 2.1 lakhs. 2.1 lakhs. 2.1 lakhs.
00:14:44In the 2.1 lakhs, increased profit will be shared among the portraits in what ratio?
00:14:492 is to 3 is to 5. After the 2 is to 3 is to 5 is sharpening. How much will be there for
00:14:55ABC? Come on. ABC. I think 42,000 and 63, 105. In their account, it is going to be credited.
00:15:11In their account, it is going to be credited. Give a credit here. P and L share due to the adjustment.
00:15:20Ok. Sir, I changed its change in the interest of 1 hour, every other year.
00:15:22In компании, I am talking to the interest of 1,000. If we need to take the interest of 1,000.
00:15:27If I want to increase 1,000, I need to take the interest of 1.5 lakhs. I can adjust the interest.
00:15:30How much will profit become the interest of 1.5 lakhs? I am not feeling it.
00:15:32So, in my opinion, there is the interest of 1,000. So, if you are looking at the interest of 1.5 lakhs are more than 1.5 lakhs.
00:15:37This 2.1 lakh is nothing but increase in net profit.
00:15:44As this 2.1 lakh is increase in net profit will be shared by APC, in there which ratio?
00:15:49A in the ratio.
00:15:51Profit increase another, 2 is to 1 is to 2 is to 3 is to 6 ratio, so here it is 42,000
00:15:59credit, 63,000 credit, 1 lakh 5,000 credit.
00:16:09Ultimate NHC, 30 debit 42 credit, 12,000 A की credit पन्निया होनो, 60, 63, 3000 C B की credit पन्निया होनो,
00:16:23C की अरम बोद 15,000 debit पन्निया होनो.
00:16:27For adjusting this error, the ultimate entry being C capital account debit 15,000, sorry
00:16:351 lakh 15,000 and A's capital credit 12,000 to C's capital, sorry to B's capital value
00:16:44being 3,000.
00:16:45Is that clear?
00:16:46C's current account, A's current account or capital account to B's capital account or current
00:16:51account.
00:16:52Clear?
00:16:531.
00:16:542.
00:16:553.
00:16:564.
00:16:574.
00:16:585.
00:16:595.
00:17:005.
00:17:016.
00:17:025.
00:17:035.
00:17:045.
00:17:056.
00:17:066.
00:17:076.
00:17:086.
00:17:096.
00:17:106.
00:17:116.
00:17:128.
00:17:138.
00:17:1410.
00:17:1511.
00:17:168.
00:17:178.
00:17:189.
00:17:199.
00:17:208.
00:17:219.
00:17:229.
00:17:2310.
00:17:249.
00:17:2610.
00:17:2711.
00:17:2812.
00:17:2911.
00:17:3014.
00:17:3114.
00:17:32in the powers of partners accounts
00:17:50in the powers of partners you can tell the partnership act
00:17:56I will just give the form it and I will just start solving the illustration one onwards one after one
00:18:14how should be a final accounts? trading P&L account and then balance sheet
00:18:40here the usual one, form it will copy this also, right
00:18:46so here you will be getting the GP
00:18:50net profit
00:18:52if the business is a sole trade business
00:18:56what is the owner, what is the charge?
00:19:00what is the charge?
00:19:02what is the individual?
00:19:04capital
00:19:06add interest on capital
00:19:10minus
00:19:12drawings
00:19:14minus
00:19:16interest on drawings
00:19:18plus
00:19:19net profit
00:19:20in case of loss we have to minus
00:19:22all
00:19:24the customers
00:19:26all
00:19:28all
00:19:30all
00:19:32all
00:19:34all
00:19:36all
00:19:38all
00:19:40When it comes to the partnership firm, support given by the partners to the firm is totally
00:19:48different.
00:19:49Each and every partner might have supported the business differently as per their own
00:19:54capacity and capability.
00:19:56So in a firm, assume that A, B, C are the three partners.
00:20:04A supports the firm physically and B supports the firm financially, C supports the firm using
00:20:13his firm.
00:20:14That's what I know.
00:20:16When I introduce the firm, I will develop the business of the firm, then I will do it.
00:20:23If you have any firm support you, you will need to get the demand.
00:20:32If you have the firm's firm's firm, you will need to get the firm's firm.
00:20:37Shouldering for risk sharing.
00:20:38So, the firm's firm will be sharing, the first four supports.
00:20:42If it comes to the firm's firm, the firm will be compensated, of course.
00:20:48If the deed is silent, of course, ultimate results share equally, net profit share equally, but
00:20:58You might have planned initially, you might have planned initially, you might have planned initially,
00:21:27and you might have had some plans at the very same time.
00:21:29You're wondering if you're going to get into the store you'll find the store is probably the same.
00:21:34The store is probably the same, not the store, you're going to have to go.
00:21:39The store is probably the same as the store's in the store.
00:21:41At the store's in store, you might have to go in whatever store go to the store.
00:21:46You don't have to do your own business, you can also work in the store.
00:21:48He has sacrificed his life. You have to do some contributions to him justifiably.
00:22:13He has sacrificed his life. He has sacrificed his life. He has sacrificed his life.
00:22:32He has sacrificed his life. He has sacrificed his life.
00:22:39He has sacrificed his life. You will be able to understand the partnership and its logic and you can handle the accounts easily.
00:22:52So, what you say is that he has sacrificed his life. He has sacrificed his life. He has sacrificed his life.
00:23:07He has sacrificed his life. If he has sacrificed his life, he has sacrificed his life.inej and his atlatesantism than the family.
00:23:18fame, if I have a business order, I will give him a commission, I will give him a commission, ok, what is the result, I will share equally, profit share,
00:23:34if I share, I will give him a letter, that part will be coming under P&L appropriation account, so now the final accounts for the partnership firm developed into the null, trading and P&L account and trading account, P&L account, balance sheet,
00:24:00P&L appropriation account, P&L appropriation account, P&L appropriation account, if it is appropriate, but if it is over and over and over and over, better open and separate account, that profit is shared to them,
00:24:18P&L account, P&L account, P&L account, P&L account, P&L account, ok, 3 partners are there, A, B, C, A, B, C, ok,
00:24:25usually we start with the capital account, we start with the capital account, we start with the capital account, net profit, in the net profit you get transfer, in the net profit you share,
00:24:47share funding, how can you purchase salary, to the eligible partner, interest on capital, to the eligible partner, commission to the eligible partner, ultimate profit and loss, ultimate profit and loss to the partners, that is how we can share,
00:25:06share.
00:25:07If you have capital, you can get interest, you can get interest, you can get interest,
00:25:13then you can subtract drawings, it's a reduction of the capital, or inverse of the capital.
00:25:23So, that will also be falling under, that's a revenue like for the P&L appropriation,
00:25:31you can get interest on drawings, interest on drawings, this is a simple structure, clear?
00:25:41If you want to add, add, add, then you can minus.
00:25:48If you want to add credit to credit, you can get debit, you can get debit.
00:25:54P&L appropriation, debit sale, you can get interest on drawings, whatever the ultimate value you get,
00:26:13you can get interest on, we will go to the paranchate.
00:26:15That's all, that's a logic here, that's a logic here.
00:26:19Clear?
00:26:20In the process, .
00:26:24One sharing, another one is errors rectification, passed in this one,
00:26:30Rendivision chapter 1, level.
00:26:32Is that okay?
00:26:33Other sharing is very simple logic.
00:26:36We have studied a comprehensive final accounts also from CMA Institute material, where how can we share in the P&L appropriation.
00:26:47If you have a capital account, you will have a balance between the capital account and the closing balance.
00:27:08If the original capital is there, we can handle the current.
00:27:17What is the current?
00:27:21We know the current.
00:27:26We know the current.
00:27:29We know the current.
00:27:34It is a natural.
00:27:35It is a natural.
00:27:37You can't see it in the Tamil media.
00:27:38It's a natural.
00:27:39If you can't see it, you can see it in the body.
00:27:42Okay.
00:27:43What is the result?
00:27:46You can see it.
00:27:47This is just joking.
00:27:49It's active.
00:27:51Now, when you are not active, you have to go.
00:27:55It's active.
00:27:56It's a natural.
00:27:59The initial amount is a natural.
00:28:02current account initial fixed capital
00:28:06prepare fixed capital and fluctuating capital
00:28:10that is not the current account balance
00:28:14that is what is current account and fixed capital account
00:28:18that is the first thing is what is fluctuating capital
00:28:22so current account is the same part
00:28:26second part is the current account
00:28:30is that clear?
00:28:34format is over
00:28:36example format
00:28:38while sharing
00:28:42P and L appropriation
00:28:44to the partners capital
00:28:46in the side
00:28:48interest on drawings
00:28:50to P and L appropriation
00:28:52journal entry format
00:28:54first illustration
00:28:56is that clear?
00:28:58format is over
00:29:00just script
00:29:02ok
00:29:04so
00:29:10I just started listening to the lectures
00:29:12point is that
00:29:14one day
00:29:16one day
00:29:18one day
00:29:20the
00:29:27,
00:29:28that
00:29:30it is really tough to understand
00:29:32So, on the EOS accent, develop and listen to it.
00:29:36If you don't know the words, you can use it first.
00:29:38You can use it in extra words.
00:29:42What advantage is, you can make this scribbling here.
00:29:45At least, you can use it in class.
00:29:47You can use it in 2 minutes.
00:29:49You have no need to refer that also later.
00:29:53So, while listening to the lecture,
00:29:55the problem is, you can face the video lectures.
00:30:00You will be active.
00:30:04You will be active.
00:30:06So, that's how I am telling you.
00:30:09Don't just listen to the lectures.
00:30:12Make this scribbling fast.
00:30:15You will be active.
00:30:17So, that's how I am telling you.
00:30:19Don't just listen to the lectures.
00:30:21Make this scribbling fast.
00:30:23Fast.
00:30:24Now, you will be active.
00:30:26Make this scribbling fast.
00:30:28Fast.
00:30:29Now, I am not teaching.
00:30:31That's the logic.
00:30:32A and B start business on 1st January 22,
00:30:36with capitals of 30 and 20.
00:30:38According to the partnership B,
00:30:40B is entitled to 500 per month,
00:30:42and interest is to be allowed on capitals at 6% per annum.
00:30:44that is not in the case,
00:30:45so P appropriation account is to be allowed.
00:30:47So, you need to tell the
00:31:01due journal entries.
00:31:03Journal entries would be allowed on the table.
00:31:04Inna kudu karangu salary, 500 per month for 6 months is 6000 and interest and capital for A's capital and for B's capital, 6% per annum, appa it is 1800, it is over 1200, 1800 and 1200.
00:31:34The remaining profits are to be distributed amongst the partners in the ratio of 5 to 3. During the year 22, the firm earned a profit before charging salary to B and interest and capital amounting to rupees 25,000. So, what do you think? Net profit from the PNL account is 25,000.
00:31:52Right. That is why you drop 8,000 and 10,000. Drawings are bringing capital withdrawal. Capital and minus. You are PNL appropriation. It is not a revenue item. It is capital item.
00:32:10Revenue item in the PNL account is PNL account. PNL account is PNL account. PNL account is PNL account is PNL account is PNL account. Is that okay?
00:32:15After 25,000 account is PNL account. I think 16,000 you have. Right. This will be shared between the two in the PNL ratio as per the annum, P5 is to 3. So, profit or loss.
00:32:29For A and B, A's capital is 10,000 and B's capital is very good. So, B's capital is 6,000. We got this now.
00:32:39So, if you want to go to the PNL account. So, if you want to go to the PNL account, general entries, what do you want to do? Drawings are going to be general entry. Drawings are going to capital minus. It is not a big deal.
00:32:50In the moon item, we want to go to entry. PNL appropriation account to B's capital. Okay. To B's capital. B's capital is B's current account.
00:33:04Okay. The value being 6,000. Second entry. Interest on capital gain entry. PNL appropriation account to A's capital to B's capital.
00:33:33To B's capital. Total B's capital is 16,000. Is that clear?
00:33:40Question . Just try answering. Okay. Try answering. And correct with me. Okay. If you have made any error, correct it yourself.
00:33:56Let's move on to the next one. Let's move on to the next one. Clear than either. Question number two. Formate
00:34:10Question number two. Question number two.
00:34:17Question number two.
00:34:19Question number two.
00:34:34Question number two.
00:34:46Form, Regime and Karim are partners in a firm. They have no agreement in respect of profit sharing ratio.
00:34:53PLRE, interest on capital, interest on loan advance, remuneration payable to partners, in the matter of distribution of profits, they have put forward the following claims.
00:35:08So, in terms of profits, ROM is the maximum capital, I am the JASI capital, if you have 10% interest on capital, share of profits in capital ratio, profit on loss capital ratio, so interest on capital as well as profit sharing ratio, PSR.
00:35:35ROM, Minnesota are, 10% demand are, PSR, capital ratio.
00:35:42Raheem has devoted, Raheem has devoted full time for running the business and demand salary at the rate of 5,500 per month, but ROM and Raheem do not agree.
00:35:55salary demand are.
00:36:02Karim demands.
00:36:20If I get a loan, I get interest in the loan.
00:36:24If I get a loan, I get interest in the loan.
00:36:28That's the same percentage.
00:36:30If I get a 10 percentage, I get another rate.
00:36:34How shall you settle the dispute and prepare profit laws appropriation?
00:36:40After transferring 10% of divisible profits to reserve,
00:36:45the dispute will be shared.
00:36:53Net profit before taking into account any of the above claims amounted to Rs. 45,000
00:36:58at the end of the year, first year of their business.
00:37:01Net profit.
00:37:03See, trading in PNL.
00:37:06PNL appropriation account.
00:37:13Now, let's see what happens.
00:37:16Interest on loan allowed, but not 12 percentage, only 6 percentage.
00:37:22And, his claim not allowed, his claim not allowed, his claim not allowed.
00:37:27Interest on loan, that means, PNL debit 118 item.
00:37:33Okay.
00:37:35Interest on loan, where is debit 118 item?
00:37:38PNL.
00:37:39Interest on loan, that means, charge not appropriation.
00:37:42Very often, this may be also asked in one word questions.
00:37:45What is the difference between charge and appropriation?
00:37:47Charge, how do you think?
00:37:49Sellow.
00:37:50Appropriation.
00:37:51Appropriation.
00:37:52Sharing.
00:37:53Sharing for the various contributors, as per their expectation, will be the sharing and appropriation.
00:38:03Charge is nothing but mandatory, whether you have any amount to be shared or not.
00:38:10Okay.
00:38:11If you have any amount to be shared, you are not.
00:38:12Okay.
00:38:13There is no amount to be shared.
00:38:14There is no amount to be shared.
00:38:15There is no amount to be paid charge.
00:38:16That means, PNL debit 118 item.
00:38:19And, the PNL concept, assume that the net profit could be 45,000 before this interest on loan.
00:38:26Interest on loan, in this 2006 percent, put it in place.
00:38:29Which means?
00:38:30Where do you want?
00:38:31Where do you get a loan?
00:38:32Where do you get a loan?
00:38:33Rinnen.
00:38:34Okay!
00:38:352000 into 6 percentage, one year, where do you get a loan?
00:38:40120.
00:38:41120?
00:38:42Yeah!
00:38:44Okay!
00:38:45120 rupees, balance and final net profit.
00:38:4744,880 final net profit. That net profit is the PNLA profit transition.
00:38:55In the question of interest on loan, PNLA profit is the PNLA profit transition.
00:39:01How do we go to PNLA profit?
00:39:05PNLA profit is the PNLA profit.
00:39:1710% of divisible profit is the reserve transfer.
00:39:23How do you reserve 10%? Distributable profit is the PNLA profit.
00:39:41Ram, Rahim and Karim.
00:39:4740,392 are the balancing figure after this.
00:39:57Should be shared among all the partners equally.
00:40:01Ram, Rahim, Karim.
00:40:05Okay, 13,464.
00:40:0913,464.
00:40:1313,464.
00:40:15Clear?
00:40:17Make note of it.
00:40:19Bet.
00:40:29Okay.
00:40:35Shall I move on the next one? Come on.
00:40:39Speed up up and do it!
00:41:11Illustration number 3.
00:41:40Yes.
00:41:41Prepare profit loss appropriation.
00:41:42That way, P&L appropriation account.
00:41:44Third illustration, illustration number 3.
00:41:52Yes.
00:41:53Prepare profit loss appropriation.
00:41:54That way, P&L appropriation account.
00:41:56Yes, comma.
00:41:57Prepare profit loss appropriation account.
00:42:03Prepare profit loss appropriation account.
00:42:04That way, P&L appropriation account.
00:42:06A and B start business on 1st January 2022.
00:42:10With capitals of 30 and 20.
00:42:11According to deed, B is entitled to a salary of Rs. 500 per month.
00:42:17A and B start business on 1st January 2022.
00:42:24With capitals of 30 and 20.
00:42:26According to deed, B is entitled to a salary of Rs. 500 per month.
00:42:30In your P&L appropriation account, B is capital for what?
00:42:41Salary.
00:42:43$500 per month.
00:42:44$500 per month.
00:42:45$6,000.
00:42:46And interest is to be allowed on opening capitals at the rate of 6 percentage per annum.
00:42:53So, for interest on capital.
00:42:58For A's capital and for B's capital.
00:43:026 percentage on this being 1800.
00:43:076 percentage on this 1200.
00:43:11The remaining profits are to be distributed amongst the partner in the ratio of 5 is to
00:43:173.
00:43:18So, profit and loss under that A's capital and B's capital.
00:43:25Shared in the ratio of 5 is to 3.
00:43:305 is to 3.
00:43:31During 2022, the firm earned a profit before charging salary to B and interest on capital
00:43:38amounting rupees 25,000.
00:43:40During the year, A withdrew 8,000, B withdrew 10,000 for domestic purposes.
00:43:53A withdrew 2,000, B withdrew 2,000.
00:43:54A withdrew 20,000.
00:43:55Now, what about the ultimate value?
00:44:09So, the balance being 16 should be shared in the ratio of 5 is to 3, A will get 10,000
00:44:19and B will get 6,000, clear?
00:44:28Let us now move on to the next one, okay?
00:44:37Question number 4.
00:44:47In question number 4, prepare capital accounts of partners A and B. Partners capital account
00:44:58I can prepare the capital account in columnar form, so that it will be very comfortable, right?
00:45:09Of course, they have not asked the P and L appropriation account, but it is working note
00:45:25that we have two partners, A and B, two partners and the moon, two partners and the moon,
00:45:35capital account in columnar form.
00:45:44Is that okay?
00:45:45So, capital account.
00:45:46So, the time is wasted from the students, they have learned in a structured manner, but
00:46:02in the examination, sometimes it is not required.
00:46:05So, what is the requirement here?
00:46:06You have to prepare capital accounts, directly you need to understand how to close the capital
00:46:10account.
00:46:11So, what is the closing capital account?
00:46:13So, what is the closing capital account?
00:46:14Capital account?
00:46:15What are the rules for the credit?
00:46:16So, what is the rules for the credit?
00:46:17You have to prepare capital account for A and B independently or collectively like A in a column
00:46:22You can prepare the capital account for A and B independently or collectively like A
00:46:37in a column and B in a column, A and B. A and B start business on 1st January 22 with
00:46:47the capitals of 30 and 40, 30 and 20. According to the partnership deed, B is entitled to a
00:46:52salary of 500 per month and interest is to be allowed. Capital level of balance, initially
00:47:01they have the balance R starting amount of payment by bank, bank contribute to capital.
00:47:08A has contributed 30,000 rupees and B has contributed 20% rupees.
00:47:12If you start business on 1st January 22, general entry is the bank of a debit to A's capital to B's capital.
00:47:20Of course entry is not required, only we have to prepare the capital account and the entry would
00:47:24ultimate posting out. And deed will be, I know, salary will be,
00:47:31you will get 6,000 rupees. And interest to be allowed on opening capital rate of 6 percentage.
00:47:47Now, here, interest and capital.
00:47:49So, if you want to write the capital account, you will get credit to your account.
00:47:52Usually, balance sheet, capital plus salary, interest and capital, net profit minus
00:48:00drawings and interest and drawings. That process, we will follow up.
00:48:03Right. And if you want to write the capital account, you want to write the capital account.
00:48:08Okay. Now, here, interest and capital.
00:48:171800 for A, 1200 for B. The remaining profits are to be distributed amongst the partners
00:48:26in the ratio of 5 is to 3.
00:48:27So, profit is 25,000 rupees. 25,000 rupees, we know that salary will be 6,000 rupees,
00:48:35interest will be 1,000 rupees.
00:48:37So, balance is 14,000 rupees.
00:48:41This is the balance profit. This is the 5 is to 3 ratio.
00:48:46Okay. A will get 10,000 and B will get 6,000. During the year, A withdrew 8,000 and B withdrew
00:48:5410,000 for domestic purpose. Drawings are the opposite side of the year, two drawings.
00:48:59A will get 8,000 and B will get 8,000 and B will get 8,000.
00:49:05This is the normal capital account model. Okay. So, if I tally this, then I will get what?
00:49:11Balance carried out. Okay. What is the total?
00:49:17The total? 41,800 for A. Okay. 32, 33,200 for B. Balancing figure for A, 33,800 for B, 23,200.
00:49:39No.
00:49:54No.
00:50:06No.
00:50:07No.
00:50:10We will discuss an example here. Interest on capital. Interest on capital.
00:50:16Interest on capital.
00:50:17That is the case.
00:50:18In interest on capital, if you have left profit, you have to see interest on capital.
00:50:25interest on capital may be provided out of profits only, but profit is in the end of interest on capital, interest on capital may be provided out of profits only.
00:50:54interest on capital would be provided out of protection,
00:51:12profit on the
00:51:15sufficient
00:51:17sufficient profit
00:51:20profit on the
00:51:2310 lekshariwa
00:51:24partner
00:51:28interest
00:51:281 lekshariwa
00:51:30ok
00:51:314 lekshariwa
00:51:33sufficient profit
00:51:37suppose
00:51:40insufficient
00:51:41interest on the
00:51:4215 lekshariwa
00:51:42wawand
00:51:43interest on capital
00:51:45net profit
00:51:46insufficient
00:51:48insufficient
00:51:50ok
00:51:53profit will be
00:51:56shared in capital
00:51:57ratio
00:51:57clear
00:52:02profit
00:52:04interest on capital
00:52:06kawal
00:52:06kawal
00:52:07kawal
00:52:08kawal
00:52:09kawal
00:52:10and
00:52:13Lee
00:52:14nga
00:52:14��
00:52:150
00:52:15we can
00:52:16use the
00:52:17pol ratio
00:52:18you can use a
00:52:20pr
00:52:21ratio
00:52:21otherwise you can use the capital ratio is that okey there is a logic
00:52:24let's see an example here there are nodes I am looking at as you don't have any response like
00:52:41okay make it faster now
00:52:54interest on capital calculation on an example Shilpa and Sanju are partners with the capital
00:53:04of rupees 1 lakh and 1 lakh 60 on January 1 2022 respectively Shilpa introduced additional
00:53:12capital of rupees 30,000 on July 1 2022 another 30,000 on October 31 2022 calculated interest
00:53:20on capital for the year ending the rate of interest so Shilpa and Sanju in case of Shilpa
00:53:27okay now 1st January 2022 annakki 1 lakh irukku and 1st July 2022 annakki innoowru 30,000 investment
00:53:34ranga and October 31st, 31st October 22 annakki innoowru 20,000 investment ranga and we assume
00:53:41that the year ends on 31st December 22 interest applicable being 9 percentage.
00:53:48appa idhu rupees rate of interest in this case being 0.09.
00:53:550.09.
00:53:560.09.
00:53:570.09.
00:53:580.09.
00:53:590.09.
00:54:000.09.
00:54:01And we assume that the year ends on 31st December 22.
00:54:07Interest applicable being 9 percentage.
00:54:10Appa, ith rupees, rate of interest in this case being 0.09, 0.09 and period, period on
00:54:221 year, and 171, this is now 6 months, so half year, last case around 11 and 12, 2 months
00:54:40at 2 by 12, 2 by 12, multiply all these things to find out the total interest, 1,009,000,
00:54:5330,000 into 9, 2,700 into 0.1350, at the case that 20,000 into 9 percentage into 2 by 2,
00:55:042 by 12, put it in 300, then total interest payable for Shilpa's captive being 10,650, okay,
00:55:1410,650, Sanju for 1,000, okay, so Sanju method will apply a particular, a particular,
00:55:26future law.
00:55:27App, 1,60,000 into 9 percentage, where are you?
00:55:32Where are you?
00:55:3314,400.
00:55:3514,400.
00:55:36Okay.
00:55:37Now, we have one more method called product method.
00:55:39Okay.
00:55:40Okay.
00:55:41Okay.
00:55:42Okay.
00:55:43Okay.
00:55:44Okay.
00:55:45Okay.
00:55:46Okay.
00:55:47Now, we have one more method called product method.
00:55:49Object is $5,500 to $8,200.
00:55:52posso $5,000,000.
00:56:03$5,000,000 in total,
00:56:05$7,200,000,
00:56:08$10,000,000,
00:56:1230,000. 31, 10, 22, 20,000. Clear? Now, 12 months, number of months eligible for interest.
00:56:346 months. 2 months. As the year ends on, 31 December, 22.
00:56:42Now, rupees in month multiply.
00:56:4812 lakhs. 1 lakh 80,000. 40,000. No, 40 lakhs 20,000.
00:57:00And the 14 lakhs 20,000 rupees 9 percentage interest.
00:57:08But the month is calculated. Now, until 1 by 12.
00:57:18Hope you will be getting 10,650.
00:57:22This is called product method.
00:57:26First, we enjoy learning. The other way is 1, 1, 22.
00:57:361 lakh. 1, 7, 22.
00:57:4230,000. Your capital increased from 1 lakh to 1 lakh 30.
00:57:4931, 10, 22.
00:57:521, 22.
00:57:531, 20.
00:57:541, 20.
00:57:551, 50,000.
00:57:56Year end being 31st December, 22.
00:57:59Okay.
00:58:00In the period.
00:58:046 months.
00:58:06Now, if we go.
00:58:08In the end of this year, 1 lakhs.
00:58:101 lakhs.
00:58:111 lakhs.
00:58:121 lakhs.
00:58:131 lakhs.
00:58:141 lakhs.
00:58:151 lakhs.
00:58:161 lakhs.
00:58:171 lakhs.
00:58:181 lakhs.
00:58:191 lakhs.
00:58:201 lakhs.
00:58:211 lakhs.
00:58:221 lakhs.
00:58:231 lakhs.
00:58:241 lakhs.
00:58:251 lakhs.
00:58:261 lakhs.
00:58:271 lakhs.
00:58:281 lakhs.
00:58:291 lakhs.
00:58:301 lakhs.
00:58:311 lakhs.
00:58:321 lakhs.
00:58:331 lakhs.
00:58:341 lakhs.
00:58:351 lakhs.
00:58:361 lakhs.
00:58:371 lakhs.
00:58:381 lakhs.
00:58:391 lakhs.
00:58:401 lakhs.
00:58:411 lakhs.
00:58:421 lakhs.
00:58:431 lakhs.
00:58:441 lakhs.
00:58:451 lakhs.
00:58:46transfer the money.
00:58:48I must say that in a few days the tax is equal to each hundred thousand.
00:58:54If it is an dollar the tax is equal to each hundred thousand,
00:58:57then you will have a tax tax as well.
00:58:59For the bank, the bank will be a tax tax tax,
00:59:02total 30,
00:59:04or higher it will be a tax tax tax,
00:59:06only one tax tax tax tax,
00:59:08$100,
00:59:10and a tax tax tax tax is equal to 50,
00:59:13So, if you do all the amount and balance your total value, you will pay 1 day interest in the month.
00:59:22In the month, the day of the month is 1 day interest in the month.
00:59:27In the month, the month of the month is 1 month interest in the month.
00:59:43Now, in case of interest on drawings,
01:00:04you have to calculate based on half year's interest.
01:00:15Okay. Let's see this illustration.
01:00:34Product method. In product method, unequal amount is withdrawn at different time period. Okay.
01:00:46Okay. In this case, you have done it. Then, year end, 31st December.
01:00:55Then, rupees, if the rate of interest assumed to be 6 percentage,
01:01:10you have to find out that interest. In the finder, 10 months interest rate of 6 percentage,
01:01:28you have to find out that interest. In the finder, 10 months interest rate of 6 percentage
01:01:39will be getting. How much?
01:01:476 percentage in the 0.06,
01:01:54you have to find out that interest rate of 10 by 12.
01:02:02You have to find out that interest rate of 10 by 12.
01:02:0425.
01:02:10So, slash 12.
01:02:1418.
01:02:1518.
01:02:1618.
01:02:1718.
01:02:1818.
01:02:19I am right.
01:02:2069.
01:02:21Either of the direct method.
01:02:25Of course, you can use the product method also. In case of product method,
01:02:31in case of product method, you have to multiply these two.
01:02:3510.
01:02:365,000.
01:02:375,000.
01:02:38400 into 9.
01:02:403,600.
01:02:41600 into 6.
01:02:423,600.
01:02:43800 into 2.
01:02:441,600.
01:02:45Total.
01:02:4613,800.
01:02:47Apa, 13,800 is the product of drawings month on month basis.
01:02:59Apa, into 6 percentage per month in calculate upon your point into 1 by 12.
01:03:04You will get the same answer.
01:03:06Is that okay?
01:03:08So, rest we will continue in the next class.