Question 53 Chapter 2 of Class 12 Part – 1 Usha Publication

Question 53 Chapter 2 of Class 12 Part – 1 Usha Publication

53. (Profit and loss appropriation a/c) Ted, Phil and Gordon are in partnership sharing profits two-fifths, two fifths and one-fifth and throughout the half-year ended 31st December 2017 their capital accounts have remained unchanged at Rs.60,000, Rs.40,000 and Rs.30,000 respectively.
Their current account balances on 1st July 2017 were:

Phil	8,550 (Dr.)
Gordon	6,550 (Dr.)
Ted	12,000 (Cr.)

During 2017 Ted withdrew Rs.200 at the beginning of each month, Gordon withdrew Rs.400 at the end of each month while Phil withdrew Rs.1,800 during the period of six months.

Their partnership deed provides that:
1. Partners are allowed interest on capital @5% p.a.
2. Partners are allowed or charged interest on current account balance @4% p.a.
3. Interest on drawings @6% p.a.
4. Gordon is entitled to a salary of Rs.500 per month.
5. Ted is entitled to a commission of 5% of the profits of the firm after charging clauses 1 to 4.
6. Phil is entitled to a commission of 5% of the profits of the firm after charging clauses 1 to 5 and his own commission.
During the half-year ended 2017, the net profit of the firm was Rs.2,07,000 after charging Gordon’s Salary which had been debited to wages and salaries account.
You are required to prepare the profit and loss appropriation account of the firm only.

The solution of Question 53 Chapter 2 of Class 12 Part – 1 Usha Publication

We are providing a solution of Question 53 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:

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The video consists solution of questions number from 50 to 54 in Chapter No. 2 class 12 of Usha publication. To check the direct solution of question no. 53 from the following video by using time stamps of the video.

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2. Check out the Solution of this question in Article Format: -

Profit and Loss App. A/c

Particulars		Amount	Particulars		Amount
To Interest on capital – Ted	1,500		By net profit	2,07,000
-Phil	1,000		Add: Gordon’s Salary	3,000	2,10,000
-Gordon	750	3250	By Interest on drawings (WN1)
To Interest on current a/c			- Ted	21
-Ted (12,000*4%*6/12)		240	-Phil	27
To Gordon Salary		3,000	-Gordon	30	78
To Commission to Ted (WN2)		10,195	By interest on current accounts:
To Commission to Phil (WN2)		9,224	-Phil (8,550*4%*6/12)		171
To Profit:			-Gordon (6,550*4%*6/12)		131
-Ted	73,788
- Phil	73,788
-Gordon	36,895	1,84,471
		2,10,380			2,10,380

Working Note: -

1. Calculation of Interest on Drawings :

Ted : 200 X 6 =1200 X 3 ½ X 6% X 1/12	21
Gordon : 400 X 6 =2400 X 2 ½ X 6% X 1/12	30
Phil: 1800 X 6% X 3/12	27

2. Commission:

Ted’s Commission	=	5% of profits after charging clauses (A) to (D)
	=	5% of ( 2,10,380-3,000-3,250-240)
	=	5% of 2,03,890 = Rs. 10,195
Phil’s Commission	=	5% of profits after charging his own commission & clauses (1) to (5)
	=	5/(100+5) of ( 2,10,380-3,000-3,250-240-10,195)
	=	5/105 of 1,93,695 = Rs. 9,225

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