Question 03 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 03 Chapter 2 of +2- Part-

Question 03 Chapter 2 of +2-Part-1

No Partnership Deed Exists

3. (Profit & Loss App. A/c / Partners’ Capital a/c’s) A and B started business in partnership on 1st Jan.,2018 and contributed Rs.1,00,000 and Rs. 80,000 respectively for capital. The terms of the partnership deed are as follows:
(i) Interest on capital @ 10% per annum;
(ii) Interest on drawings @12% per annum;
(iii) A to get a monthly salary Rs.2,000 and B, a commission of Rs.10,000 p.a.
(iv) Profit and loss shall be shared in the ratio of their capitals.
The profit for the year was Rs. 1,30,030 before making the above adjustments. The drawings were Rs.20,000 and Rs.16,000 of A and B respectively.
Prepare Profit and Loss Appropriation Account and Partners’ Capital Accounts. The capital accounts are fluctuating.

 

The solution of Question 03 Chapter 2 of +2 Part-1

: – 

 

Profit and Loss Appropriation Account A/cfor the year ended 31st March 2019
Particulars
Amount Particulars
Amount
To Interest on capital –     By Profit b/d   1,30,030
A 10,000   By interest on drawings:    
B 8,000 18,000 -A (On 20,000 for 6 months) 1,200  
To A’ s Salary (Rs.2,000*12)   24,000 -B (On 16,000 for 6 months) 960 2,160
To B’s Commission   10,000      
To Net profit transferred to Capital a/cs          
-A (5/9) 44,550        
-B (4/9) 35,640 80,190      
           
           
    1,32,190     1,32,190

 

Partners’ Capital Accounts
 
Particulars
A B Particulars
A B
To Drawings A/c   20,000 16,000 By Balance B/d   1,00,000 80,000
To Interest on Drawings A/c   1,200 960 By Interest on Capital A/c   10,000 8,000
        By Salary   24,000
        By Commission   10,000
To Balance c/d   1,57,350 1,16,680 By P&L Appropriation A/c   44,550 35,640
               
               
    1,78,550 1,33,640
    1,78,550 1,33,640

 

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

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