Question 38 Chapter 3 - Unimax Class 12 Part 1 - 2021

Question 38 Chapter 3 - Unimax Class 12 Part 1

38. X and Y are partners. As on 1st April, 2020, the capital of the firm was Rs. 45000 out of which Rs. 30000 stood to the credit of X and Rs. 15000 to the credit of Y. Profits and Losses are to be divided in ratio 2 : 1. During year ended 31st March, 2021, Y’s Drawings were Rs. 3000. Both X and Y are entitled to annual salary of Rs. 5000 each and interest on capital @ 5% per annum.
The net profit for year ending 31st March, 2021 before providing above adjustments amounted to Rs. 40000. Prepare firm’s Profit and Loss Appropriation Account.

The solution of Question 38 Chapter 3 - Unimax Class 12 Part 1:

Partner’s Capital Accounts

Particulars	X	Y	Particulars	X	Y
To drawings		3000	By Balance b/d	30000	15000
To Balance c/d	67000	33000	By Profit	30500	15250
			By Salary A/c	5000	5000
			By Int. on Capital A/c	1500	750
	67000	36000		67000	36000
			By Balance b/d	67000	36000

Working Notes :

(1)Capital of the end	100000
Add Drawings	3000
	103000

Less Salary	10000
Interest on Capital	2250
Capital in the beginning	45000	57250
Profit during the year		45750

(2) X’s share of profit = 45750 x2/3
                                  = Rs. 30500
Y’s share of profit = 45750 x2/3
                              = Rs. 15250

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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