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Question 54 Chapter 2 of +2-Part-1
54. (Profit and loss appropriation a/c, Partners Capital and Current a/c) R, S and T are partners sharing profits and losses in proportion to their capitals in the beginning of the year. They are entitled to draw annually Rs.3,000, Rs.2,500 and Rs.2,000 respectively as out of their anticipated share of profits.
Any drawings in excess of these amounts are to be regarded as advances taken from the firm and are to be subject to interest @18% p.a. the capital in the beginning of the year is to be allowed interest @ 15% p.a.
The capitals of the partners in the beginning of the year were R- Rs. 40,000; S- Rs.30,000 and T- Rs. 20,000. The credit balances of their current accounts were as R- Rs.1,152, S- Rs.1,864 and T- Rs.576
Their drawings during the year were as R- Rs.7,000; S-Rs. 9,500 and T- Rs.3,000. The profit for the year was Rs.30,420 before making any adjustment for interest as above.
Draw up the Profit and Loss appropriation account, Capital and Current accounts of the partners for the year ended 31st March 2018.
Profit and Loss App. A/c
| Particulars |
Amount | Particulars |
Amount | ||
|---|---|---|---|---|---|
| To Interest on capital - R | 6,000 | By net profit | 30,420 | ||
| -S | 4,500 | By Interest on drawings - | |||
| -T | 3,000 | 13,500 | R on Rs.4,000(7,000-3,000) | 360 | |
| S on Rs.7,000(9,500-2,500) | 630 | ||||
| T on Rs.1,000(3,000-2,000) | 90 | 1,080 | |||
| To Net profit transferred to Capital a/cs | |||||
| -R- 4/9 | 8,000 | ||||
| -S-3/9 | 6,000 | ||||
| -T-2/9 | 4,000 | 18,000 | |||
| 31,500 | 31,500 | ||||
Partners' Capital A/cs
| Particulars |
R | S | T | Particulars |
R | S | T | ||
|---|---|---|---|---|---|---|---|---|---|
| By Balance B/d | 40,000 | 30,000 | 20,000 | ||||||
| To Balance c/d | 40,000 | 30,000 | 20,000 | ||||||
| 40,000 | 30,000 | 20,000 | 40,000 | 30,000 | 20,000 | ||||
Partners' Current A/cs
| Particulars |
R | S | T | Particulars |
R | S | T | ||
|---|---|---|---|---|---|---|---|---|---|
| To Drawings A/c | 7,000 | 9,500 | 3,000 | By Balance B/d | 1,152 | 1,864 | 576 | ||
| To interest on Drawings A/c | 360 | 630 | 90 | By Interest on Capital A/c | 6,000 | 4,500 | 3,000 | ||
| By net profit | 8,000 | 6,000 | 4,000 | ||||||
| To Balance c/d | 7,792 | 2,234 | 4,486 | ||||||
| 15,152 | 12,364 | 7,576 | 15,152 | 12,364 | 7,576 | ||||
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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.
This guide covers "Question 54 Chapter 2 of +2 Part-1 - USHA Publication 12 Class Part - 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication +2 Part 1.
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