Question 16 Chapter 2 of Class 12 Part - 1 VK Publication

Question 16 Chapter 2 of Class 12 Part - 1

16. A and B are partners sharing profits and losses in the ratio of 3:1. On 1st April, 2017, their capitals were: A Rs. 50,000 and B Rs. 30,000. During the year ended 31st March, 2018, they earned a net profit of 750,000. The terms of partnership are as follows:
(a) Interest on capital is to be charged @6% per annum.
(b) A will get a commission at 2% on turnover.
(c) B will get a salary of Rs. 500 per month.
(d) B will get commission of 5% on profits after deduction of all expenses including commission
Partners Drawings for the year were: A Rs. 8,000 and B Rs. 6,000. Turnover for the year was Rs. 3,00,000
After considering the above facts, you are required to prepare the Profit and Loss Appropriation Account and Partners' Capital Accounts.

The solution of Question 16 Chapter 2 of Class 12 Part - 1: -

Profit and Loss Appreciation Account

(For the year ended 31st March, 2018)

Particulars		Amount	Particulars	Amount
To Interest on Capital A/c:			By Profit and Loss A/c	50,000
A	3,000
B	1,800	4,800
To A’s Salary A/C		6,000
To B’s Salary A/C		6,000
To B’s Commission A/C( 33,2000 x 5/105)		1,581
To Profit Transferred To Capital A/C’s
A	23,714
B	7,905	31,619
		50,000		50,000

Partner's Capital Account

Particulars	A Rs.	B Rs.	Particulars	A Rs.	B Rs.
To Drawings Account	8,000	6,000	By Balance b/d	50,000	30,000
To Balance c/d	74,714	41,286	By Interest on Capital	3,000	1,800
			To A’s Salary A/C	6,000	-
			To B’s Salary A/C	-	6,000
			To B’s Commission A/C	-	1,581
			By P & L App. A/c	94,162	31,388
	82,714	47,286		82,714	47,286

Note: Interest on Drawings has been charged for an average period of six months.

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Usha Publication - Accountancy PSEB (Class 12) - Volume I - Solution

Chapter No. 1 - Accounting Not for Profit Organisations

Chapter No. 2 - Partnership Accounts - I (Introduction)

Chapter No. 3 - Partnership Accounts - II (Goodwill: Nature and Valuation)

Chapter No. 4 - Partnership Accounts - III (Reconstitution of Partnership)

Chapter No. 5 - Partnership Accounts - IV (Admission of A Partner)

Chapter No. 6 - Partnership Accounts - V (Retirement and Death of A Partner)

Chapter No. 7 - Partnership Accounts - VI (Dissolution of Partnership Firm)

Chapter No. 8 - Company Accounts (Share Capital)

Chapter No. 9 - Company Accounts (Issue of Debentures)

Chapter No. 10 - Company Accounts (Redemption of Debentures)

Usha Publication - Accountancy PSEB (Class 12) - Volume II - Solution

Chapter No. 1 - Financial Statements of a Company

Chapter No. 2 - Financial Statement Analysis

Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size

Chapter No. 4 - Ratio Analysis

Chapter No. 5 - Cash Flow Statement

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