Question 30 Chapter 3 - Unimax Class 12 Part 1 - 2021

Question 30 Chapter 3 - Unimax Class 12 Part 1

30. Y and Z are partners with opening capitals of Rs. 200000 and Rs. 150000 respectively and their profit sharing ratio is 3 : 2. Interest on Capital is agreed @ 10% per annum. Z is to be allowed an annual salary of Rs. 9600. The profits of the year 2021, before adjustment of interest on capital and before charging salary amounted to Rs. 75000. Y is entitled to a commission of 10% of the profits after deducting salary and interest on capital, but before charging such commission.
Prepare Profit and Loss Appropriation Account and Capital Accounts of Y & Z.

The solution of Question 30 Chapter 3 - Unimax Class 12 Part 1:

Profit & Loss of Appropriation A/c For the year ended 

Particulars		Rs.	Particulars	Rs.
To Interest on Capital			By Net Profit	75000
- Y	20000
- Z	15000	35000
To Salary A/c		9600
To Commission A/c		3040
To Profit transferred to capital A/cs
- Y (3/5)	16416
- Z (2/5)	10944	27360
		75000		75000

Capital Accounts

Particulars	Y	Z	Particulars	Y	Z
To Bal c/d	239456	185544	By Balance b/d	200000	150000
			By Interest on capital A/c	20000	15000
			By Commission A/c	3040
			By Salary A/c	9600
			By Profit & Loss Appropriation A/c (Profit)	16416	10944
	239456	185544		239456	185544

Working Note :
Calculation of Commission
= (Rs. 75000 – Rs. 35000 – Rs. 9600) x 10%
= Rs. 30400 x 10%
= Rs. 3040

 

https://tutorstips.com/what-is-partnership/

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication