## Question 62 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 62 Chapter 2 of +2-Part-1

62. (Capital ratio) Honest and Sincere are partners in a firm., having total capital of Rs.80,000 of which Rs.50,000 is of Honest and balance is of Sincere on 1st April 2017. As per the partnership deed they are to share profits in capital ratio. Honest brought in additional capital of Rs.15,000 and Rs.20,000 on 1st September 2017 and on 1st Jan.2018, respectively. Sincere introduced Rs.5,000 and Rs.6,000 on 1st December 2017 and 31st March 2018 respectively. Calculate capital ration. The profit for the year ended 31st March 2018 was Rs.68,700.

### The solution of Question 62 Chapter 2 of +2 Part-1: –

 Calculation of Capital ratio: Honest Date Capital(A) Months(B) Actual Capital Employed(C=A*B) 1-4-17 50,000 5 2,50,000 1-9-17 65,000 4 2,60,000 1-12-17 – – – 1-1-18 85,000 3 2,55,000 31-3-18 – 0 – 7,65,000

 Calculation of Capital ratio: Sincere Date Capital(A) Months(B) Actual Capital Employed(C=A*B) 1-4-17 30,000 8 2,40,000 1-9-17 – – – 1-12-17 35,000 4 1,40,000 1-1-18 – – – 31-3-18 61,000 0 – 3,80,000

Capital ratio : 7,65,000: 3,80,000 or 765:380 or 153:76

Working Note: –

1. Interest on capital:

 Honest = 68,700 X 153 229 = 45,900/-

 Sincere = 68,700 X 76 229 = 22,800/-

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I
• Chapter No. 3 – Partnership Accounts – II (Introduction)
• Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
• Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
• Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

• Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)
• Chapter No. 2 – Techniques of Financial Statement Analysis
• Chapter No. 3 – Ratio Analysis
• Chapter No. 4 – Cash Flow Statement

## Question 61 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 61 Chapter 2 of +2-Part-1

61. (Capital ratio/ interest on capital) X and Y commenced business on 1st April,2016 with a capital of Rs.20,000 and Rs.10,000 respectively. They agreed to share profits and losses in the ratio of their capitals. You are required to distribute the profit for the year which was Rs.42,200:

 Capital Introduced Capital Withdrawn X Y X Y 1st June 5,000 – – – 1st Aug – 3,000 2,000 – 30th Nov 6,000 – – 5,000 31-Mar – 5,000 1,000 –

### The solution of Question 61 Chapter 2 of +2 Part-1: –

 Calculation of Capital ratio: X Date CapitalBrought CapitalWithdrawn Net Capital (A) Months(B) Product(C=A*B) 1-4-16 20,000 – 20,000 2 40,000 1-6-16 5,000 – 25,000 2 50,000 1-8-16 – 2,000 23,000 4 92,000 30-11-16 6,000 – 29,000 4 1,16,000 31-3-17 1,000 28,000 0 – 2,98,000

 Calculation of Capital ratio: Y Date CapitalBrought CapitalWithdrawn Net Capital (A) Months(B) Product(C=A*B) 1-4-16 10,000 – 10,000 4 40,000 1-8-16 3,000 – 13,000 4 52,000 30-11-16 – 5,000 8,000 4 32,000 31-3-17 5,000 – 13,000 0 – 1,24,000

Capital ratio : 298:124 or 149:62

Working Note: –

1. Interest on capital:

 X = 42,200 X 149 211 = 29,800/-

 Y = 42,200 X 62 211 = 12,400/-

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I
• Chapter No. 3 – Partnership Accounts – II (Introduction)
• Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
• Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
• Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

• Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)
• Chapter No. 2 – Techniques of Financial Statement Analysis
• Chapter No. 3 – Ratio Analysis
• Chapter No. 4 – Cash Flow Statement

## Question 60 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 60 Chapter 2 of +2-Part-1

60. (Capital ratio/ interest on capital) X and Y commenced business on 1st Jan.2014 with capitals of Rs2,00,000 and Rs.1,00,000 respectively. They decided to share profits in their capital ratio. You are required to calculate the capital ratio on the basis of the following information:

 Capital Introduced Capital Withdrawn X Y X Y 31st March 2014 – 20,000 10,000 – 30th June 2014 40,000 – – 10,000 30th September 2014 – 30,000 20,000 – 1st Nov 2014 – 10,000 30,000 – 1st Dec 2014 20,000 – – 20,000

Also, calculate interest on capital if it is 12% p.a.

### The solution of Question 60 Chapter 2 of +2 Part-1: –

 Calculation of Capital ratio: X Date Capital(A) Months(B) Product(C=A*B) 1-1-14 2,00,000 3 6,00,000 31-3-14 1,90,000 3 5,70,000 30-6-14 2,00,000 3 6,90,000 30-9-14 2,00,000 1 2,10,000 1-11-14 2,00,000 1 1,80,000 1-12-14 2,00,000 1 2,00,000 24,50,000

 Calculation of Capital ratio: Y Date Capital(A) Months(B) Product(C=A*B) 1-1-14 1,00,000 3 3,00,000 31-3-14 1,20,000 3 3,60,000 30-6-14 1,10,000 3 3,30,000 30-9-14 1,40,000 1 1,40,000 1-11-14 1,50,000 1 1,50,000 1-12-14 1,30,000 1 1,30,000 14,10,000

Capital ratio : 24,50,000: 14,10,000 or 245:141

Working Note: –

1. Interest on capital:

 X = 56,700 X 12 X 1 100 12 = 24,500/-

 Y = 14,10,000 X 12 X 1 100 12 = 14,100/-

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I
• Chapter No. 3 – Partnership Accounts – II (Introduction)
• Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
• Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
• Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

• Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)
• Chapter No. 2 – Techniques of Financial Statement Analysis
• Chapter No. 3 – Ratio Analysis
• Chapter No. 4 – Cash Flow Statement

## Question 59 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 59 Chapter 2 of +2-Part-1

59. (Distribution of profit in the capital ratio) A starts business on 1 April 2018 with Rs.20,000. B joins him on 1st July 2018 and contributes Rs.10,000 as his capital. Both of them further bring in Rs.6,000 each on 1st December 2018. During the year ended 31st March 2019, they earned a profit of Rs.56,700. Distribute the profit in capital ratio.

### The solution of Question 59 Chapter 2 of +2 Part-1: –

 Calculation of Capital ratio: A Date Capital(A) Months(B) Product(C=A*B) 1-4-18 20,000 12 2,40,000 1-12-18 6,000 4 24,000 2,64,000

 Calculation of Capital ratio: B Date Capital(A) Months(B) Product(C=A*B) 1-7-18 10,000 9 90,000 1-12-18 6,000 4 24,000 1,14,000

Capital ratio : 264: 114 or 44:19

Working Note: –

1. Interest on capital:

 Interest on capital for = 56,700 X 44 63 = 39,600/-

 B’s share in profits = 56,700 X 19 63 = 17,100/-

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I
• Chapter No. 3 – Partnership Accounts – II (Introduction)
• Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
• Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
• Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

• Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)
• Chapter No. 2 – Techniques of Financial Statement Analysis
• Chapter No. 3 – Ratio Analysis
• Chapter No. 4 – Cash Flow Statement

## Question 58 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 58 Chapter 2 of +2-Part-1

58. (Profit and loss appropriation a/c, capital account & current accounts) From the following information, prepare:
1. The profit and loss appropriation account of P,Q and R for the year ended 31.12.15.
2.The capital and current accounts of P,Q and R are:

 Partners Capital(1.1.15) Current (1.1.2015) Drawings (31.12.15) P 6,000 2,000 (Cr.) 4,000 Q 10,000 1,000 (Cr.) 4,800 R 16,000 1,000 (Cr.) 4,800
1. Interest is credited @ 6% p.a. on capital and is charged on drawings at the same rate. Interest is neither credited nor charged on the balance of current accounts.
2. Each partner took at the end of each quarter % of his drawings.
3. P and Q were to be credited with salaries of Rs.2,400 and Rs.1,600 p.a. respectively.
4. On 1.7.2015, P paid in additional Rs.2,000 as capital and R withdrew Rs.2,000 from the capital.
5. The net profit before charging interest on capital and partners’ salaries and before interest on drawings had been credited was Rs.19,600.
6. Profit and loss shared among P, Q and R were 5:4:3 respectively.

### The solution of Question 58 Chapter 2 of +2 Part-1: –

 Profit and Loss Account A/c Particulars Amount Particulars Amount To Interest on capital – P 420 By net profit 19,600 -Q 600 By interest on drawings: -R 900 1,920 – P 90 To Salary- P 2,400 – Q 108 – Q 1,600 4,000 – R 108 306 To Net profit transferred to Capital a/cs -P 5,828 -Q 4,662 -R 3,496 13,986 19,906 19,906

 Profit and Loss Account A/c Particulars P Q R Particulars P Q R To bank a/c – – 2,000 By Balance B/d 6,000 10,000 16,000 To Balance c/d 8,000 10,000 14,000 8,000 10,000 16,000 8,000 10,000 16,000

 Profit and Loss Account A/c Particulars Thread Needle Button Particulars Thread Needle Button To Drawings A/c 1,000 1,200 1,200 By Interest on Capital A/c 2,000 1,000 1,000 To Drawings A/c 1,000 1,200 1,200 By Interest on Capital A/c 420 600 900 To Drawings A/c 1,000 1,200 1,200 By salary 2,400 1,600 – To Drawings A/c 1,000 1,200 1,200 By net profit 5,828 4,662 3,496 To int. on Drawings A/c 90 108 108 To Balance c/d 6,558 2,954 488 10,648 7,862 5,396 10,648 7,862 5,396

Working Note: –

1. Interest on capital:

 Interest on capital for = 6% on 6,000 + 6% on 2,000 for 6 months. = 360+ 60 = Rs.420 Interest on capital for R = 6% on 16,000 for 6 months + 6% on 14,000 for 6 months = 480+ 420 = Rs900

2. Interest on drawings:

 Interest on drawings for P = 6% on 1,000 for 9 months + 6% on 1,000 for 6 months + 6% on 1,000 for 3 months = 45+ 30 +15 = Rs.90 Interest on drawings for Q and R = 6% on 1,200 for 9 months + 6% on 1,200 for 6 months + 6% on 1,200 for 3 months = 54+ 36 +18 = Rs.108 each

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I
• Chapter No. 3 – Partnership Accounts – II (Introduction)
• Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
• Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
• Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

• Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)
• Chapter No. 2 – Techniques of Financial Statement Analysis
• Chapter No. 3 – Ratio Analysis
• Chapter No. 4 – Cash Flow Statement

## Question 57 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 57 Chapter 2 of +2-Part-1

57. (Profit and loss appropriation a/c)X, Y and Z are in partnership with capital of Rs.1,20,000(credit), Rs.1,00,000 (credit) and Rs.8,000 (debit) respectively on1st April,2018. Their partnership deed provided the following:
1. Partners are to be only allowed interest on capital @5% p.a. and are to be charged interest on drawings @6%p.a.
2. X is entitled to a remuneration of 10% of the net profit for securing contacts with customers.
3. Y is also entitled to a commission of 10% of the net profit after charging above clauses.
4. Z is also entitled to a rent of Rs.1,000 per month for the use of premises by the firm.
During the year, X withdrew R.200 at the beginning of every month. Y Rs.300 during the month and Z Rs.400 at the end of every month.
The net profit of the firm for the year ended 31st March 2019 before providing for any of the above clauses was Rs.1,11,000.
From the above you are required to draft only the Profit and Loss Appropriation Account for the year ended 31st March,2019.

### The solution of Question 57 Chapter 2 of +2 Part-1: –

 Profit and Loss Account A/c Particulars Amount Particulars Amount To Interest on capital – X 6,000 By net profit 1,11,000 -Y 5,000 11,000 By Interest on capital – Z 400 To Z’s rent 12,000 By interest on drawings: To Remuneration to X 8,872 – X 78 To Remuneration to Y 7,985 – Y 108 – Z 132 318 To Net profit transferred to Capital a/cs – X 23,954 – Y 23,954 – Z 23,953 71,861 1,11,718 1,11,718

Working Note: –

1. Calculation of Interest on Drawings :

 X : Rs.2400*6% *6.5/12 = 78 Y: Rs.3,600*6%*6/12 = 108 Z : Rs.4800*6% *5.5/12 = 132

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I
• Chapter No. 3 – Partnership Accounts – II (Introduction)
• Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
• Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
• Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

• Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)
• Chapter No. 2 – Techniques of Financial Statement Analysis
• Chapter No. 3 – Ratio Analysis
• Chapter No. 4 – Cash Flow Statement

## Question 56 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 56 Chapter 2 of +2-Part-1

56. (Profit and loss a/c, Partners Capital and Current a/c) Thread, Needle and Button are in partnership and during the year ended 31-3-2017, they earned a profit of Rs.83,000. Thread and Needle are entitled to get 10% p.a. interest on capital of Rs.60,000 and Rs.1,00,000 respectively. Button who has no capital in the firm is entitled to a salary of Rs.12,000 p.a. Button is also entitled to a commission of 10% on the profits after charging interest, salary and commission.
It is further agreed that the balance of profits should be appropriated as to 20% for charity fund and balance is shared equally by Thread and Needle.
Prepare profit and loss appropriation account and partners capital and current account for the year ended 31st March 2017, if the drawings of the partners during the year were Thread- Rs. 8,000; Needle-Rs.6,000 and Button- Rs.9,000.

### The solution of Question 56 Chapter 2 of +2 Part-1: –

 Profit and Loss Account A/c Particulars Amount Particulars Amount To Interest on capital – Thread @10% 6,000 By net profit 85,000 -Needle @10% 10,000 12,500 To Button’s Salary 12,000 To Button’s Commission (WN1) 5,000 To Charity Fund (WN2) 10,000 To Net profit transferred to Capital a/cs -Thread- 1/2 20,000 -Needle -1/2 20,000 40,000 85,000 85,000

 Profit and Loss Account A/c Particulars Thread Needle Particulars Thread Needle By Balance B/d 30,000 20,000 To Balance c/d 30,000 20,000 30,000 20,000 30,000 20,000

 Profit and Loss Account A/c Particulars Thread Needle Button Particulars Thread Needle Button To Drawings A/c 8,000 6,000 9,000 By Interest on Capital A/c 6,000 10,000 – By Commission – – 5,000 By salary – – 12,000 By P&L Appropriation A/c 20,000 20,000 To Balance c/d 18,000 24,000 8,000 26,000 30,000 17,000 26,000 30,000 17,000

Working Note: –

1. Button’s Commission:

 Button’s Commission = 10% of profits after charging interest, salary and commission = 10/110 of (83,000-16,000-12,000) = 10/110 of 55,000 = Rs. 5,000 2. Charity Fund: = 20% of profits after charging all expenses = 20% of ( 83,000-16,000-12,000-5,000) = 20% of 50,000 = Rs. 10,000

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I
• Chapter No. 3 – Partnership Accounts – II (Introduction)
• Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
• Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
• Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

• Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)
• Chapter No. 2 – Techniques of Financial Statement Analysis
• Chapter No. 3 – Ratio Analysis
• Chapter No. 4 – Cash Flow Statement

## Question 55 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 55 Chapter 2 of +2-Part-1

55. (P/L appropriation a/c, Partners fixed accounts) Black and White have capital of Rs. 75,000 and Rs.50,000 respectively on 1st April, 2016. They share profits in the ratio of 2:1.
The firm has to transfer 5% of net divisible profits for the cost of a pending law suit. Manager of the firm is to get salaries Rs.25,000. The position of the current accounts is as follows:

 Black Rs.12,000 (Dr.) White Rs.5,000 (Cr.)

Interest on opening capital account is allowed @10% p.a. Black withdraws Rs.20,000 during the year, while White withdraws Rs.1,000 p.m. on the first day of every month. Interest on drawings is calculated @12% p.a. Business earned profits of Rs.1,10,000 during the year before the manager’s salary. Black is to be paid salary @Rs.1500 p.m.
Distribute the profit between Black and White and show the partners capital account and current account.

### The solution of Question 55 Chapter 2 of +2 Part-1: –

 Profit and Loss Account A/c Particulars Amount Particulars Amount To Interest on capital – Black @10% 6,000 By net profit (1,10,000-25,000 manager’s salary) 85,000 -White @10% 4,500 12,500 By interest on drawings: (WN2) 3,000 To Salaries – Black (1500*12) 18,000 -Black(20,000*12%*6/12) 1,200 To Contingency Reserve a/c (WN1) 2,690 -White(12,000*12%* 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

 Profit and Loss Account A/c 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

 Profit and Loss Account A/c 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*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.

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I
• Chapter No. 3 – Partnership Accounts – II (Introduction)
• Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
• Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
• Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

• Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)
• Chapter No. 2 – Techniques of Financial Statement Analysis
• Chapter No. 3 – Ratio Analysis
• Chapter No. 4 – Cash Flow Statement

## Question 54 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

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.

### The solution of Question 54 Chapter 2 of +2 Part-1: –

 Profit and Loss Account 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

 Profit and Loss Account A/c 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

 Profit and Loss Account A/c 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

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I
• Chapter No. 3 – Partnership Accounts – II (Introduction)
• Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
• Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
• Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

• Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)
• Chapter No. 2 – Techniques of Financial Statement Analysis
• Chapter No. 3 – Ratio Analysis
• Chapter No. 4 – Cash Flow Statement

## Question 53 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 53 Chapter 2 of +2-Part-1

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 +2 Part-1: –

 Profit and Loss Account 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*6 =1200 * 3 ½*6% *1/12 21 Gordon : 400*6 =2400 * 2 ½*6% *1/12 30 Ted : 1800*6% *3/12 27

2. Commission:

 Ted’s Commission = 5% of profits after charging clauses (1) to (4) = 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

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I
• Chapter No. 3 – Partnership Accounts – II (Introduction)
• Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
• Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
• Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

• Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)
• Chapter No. 2 – Techniques of Financial Statement Analysis
• Chapter No. 3 – Ratio Analysis
• Chapter No. 4 – Cash Flow Statement