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

Question 62 Chapter 2 of +2- Part-

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/-    
         



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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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 62 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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

Question 61 Chapter 2 of +2- Part-

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
Capital
Brought
Capital
Withdrawn
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
Capital
Brought
Capital
Withdrawn
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/-    
         



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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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 61 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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

Question 60 Chapter 2 of +2- Part-

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/-        
             



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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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 60 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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

Question 59 Chapter 2 of +2- Part-

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/-    
         



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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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 59 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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

Question 58 Chapter 2 of +2- Part-

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



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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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 58 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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

Question 57 Chapter 2 of +2- Part-

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

 


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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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 57 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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

Question 56 Chapter 2 of +2- Part-

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

 


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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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 56 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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

Question 55 Chapter 2 of +2- Part-

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.

 

 

 


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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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 55 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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

Question 54 Chapter 2 of +2- Part-

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

 

Thanks, Please Like and share with your friends  

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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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 54 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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

Question 53 Chapter 2 of +2- Part-

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

Thanks, Please Like and share with your friends  

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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 53 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms