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

Question 03 Chapter 2 of +2- Part-
Q-3 - CH-2 - Usha +2 Book 2018 - Solution

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Question 03 Chapter 2 of +2-Part-1

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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 of 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/c for the year ended 31st Dec. 2018
Particulars
AmountParticulars
Amount
To Interest on capital –  By Profit b/d 1,30,030
A10,000 By interest on drawings:  
B8,00018,000-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)9602,160
To B’s Commission 10,000   
To Net profit transferred to Capital a/cs    
-A (80,190 x 5/9)44,550    
-B (80,190 x 4/9)35,64080,190   
      
      
  1,32,190  1,32,190

working Note :-

 A : B

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1,00,000 : 80,000

5 : 4

Partners’ Capital Accounts
 
Particulars
ABParticulars
AB
To Drawings A/c 20,00016,000By Balance B/d 1,00,00080,000
To Interest on Drawings A/c 1,200960By Interest on Capital A/c 10,0008,000
    By Salary 24,000
    By Commission 10,000
To Balance c/d  1,57,3501,16,680By P&L Appropriation A/c 44,55035,640
        
        
  1,78,5501,33,640
  1,78,5501,33,640

 

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

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

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

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

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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