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.
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The solution of Question 03 Chapter 2 of +2 Part-1
|Profit and Loss Appropriation Account A/cfor the year ended 31st March 2019
|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|
|Partners’ Capital Accounts
|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|
|To Balance c/d||1,57,350||1,16,680||By P&L Appropriation A/c||44,550||35,640|
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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