Question 55 Chapter 2 of Class 12 Part – 1 Usha Publication

The solution of Question 55 Chapter 2 of Class 12 Part – 1 Usha Publication

We are providing a solution of Question 55 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:

1. Check out the Solution of this question in Video Format:-

The video consists solution of questions number from 55 to 59 in Chapter No. 2 class 12 of Usha publication. To check the direct solution of question no. 55 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 – Black @10%	7500		By net profit (1,10,000-25,000 manager’s salary)		85,000
-White @10%	5000	12,500	By interest on drawings: (WN2)
To Salaries – Black (1500 X 12)		18,000	-Black(20,000 X 12% X 6/12)	1,200
To Contingency Reserve a/c (WN1)		2,690	-White(12,000 X 12% X 6½ /12	780	1,980
To Net profit transferred to Capital a/cs
- Black 2/3	35,860
- White 1/3	17,930	53,790
		86,980			86,980

 

Partners' Capital A/cs

Particulars		Black	White	Particulars		Black	White
				By Balance B/d		75,000	50,000
To Balance c/d		75,000	50,000
		75,000	50,000			75,000	50,000

Partners' Current A/cs

Particulars		Black	White	Particulars		Black	White
To Balance b/d		12,000	-	By Balance B/d		-	5,000
To Drawings A/c		20,000	12,000	By Interest on Capital A/c		7,500	5,000
To interest on Drawings A/c		1200	780	By Salary		18,000	-
				By P & L Appropriation A/c		35,860	17,930
To Balance c/d		28,160	15,150
		61,360	27,930			61,360	27,930

Working Note: -

1. Contingency Reserve (for a pending lawsuit)

5% on net divisible profits means after charging this contingency reserve:
86,980-(12500+18,000) = 56480 X 5/105 =2690(approx.)

2. Interest on Black’s drawings to be charged for half year only as date of drawings are not mentioned.
Interest on White’s Drawings are charged for 6½ months as drawings are made equally throughout the year on first day of every month.

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