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Question 47 Chapter 2 of Class 12 Part – 1 Usha Publication
47. (Profit and loss Appropriation a/c, Partners’ Capital a/c) Ajay and Atul are partners in a business showing profits and losses in the ratio of 3:2. Their capitals on 1st Jan, 2018 amounted to Rs.50,000 and Rs.30,000 respectively. During the year ended 31st December,2018 their profit was Rs.42,050 without taking into consideration interest on capital and drawings and a salary to Ajay Rs.12,000 p.a. Interest on capital is to be allowed at 8% p.a. and charged on drawings at an average rate of 5% p.a. The drawings on Ajay and Atul during the year were Rs.5,000 and Rs.2,000 respectively and interest on them worked out to be Rs250 and Rs.100 respectively.
Prepare the Profit and loss appropriation account and the capital accounts of the partners as on 31st Dec., 2018.
We are providing a solution of Question 47 Chapter 2 of Class 12 Part - 1 Usha Publication in two formats. one is in Video format and another is in article format. Check out both formats as follows:
The video consists solution of questions number from 46 to 49 in Chapter No. 2 class 12 of Usha publication. To check the direct solution of question no. 47 from the following video by using time stamps of the video.
Profit and Loss App. A/c
| Particulars |
Amount | Particulars |
Amount | ||
|---|---|---|---|---|---|
| To Interest on capital - Ajay | 4,000 | By Profit b/d | 42,050 | ||
| -Atul | 2,400 | 6400 | By interest on drawings: | ||
| To Ajay’s Salary | 12,000 | - Ajay | 250 | ||
| - Atul | 100 | 350 | |||
| To Net profit transferred to Capital a/cs | |||||
| -Ajay | 14,400 | ||||
| -Atul | 9,600 | 24,000 | |||
| 42,400 | 42,400 | ||||
| Partners' Capital A/c | |||||||
| Particulars |
Ajay | Atul | Particulars |
Ajay | Atul | ||
|---|---|---|---|---|---|---|---|
| To Drawings A/c | 5,000 | 2,000 | By Balance B/d | 50,000 | 30,000 | ||
| To Interest on Drawings A/c | 250 | 100 | By Interest on Capital A/c | 4,000 | 2,400 | ||
| By Salary | 12,000 | - | |||||
| By P&L Adjustment A/c | 14,400 | 9,600 | |||||
| To Balance c/d | 75,150 | 39,900 | |||||
| 80,400 | 42,000 | 80,400 | 42,000 | ||||
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Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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