Question 04 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 04 Chapter 2 of +2-Part-1

4. (Absence of Partnership deed) A presents the following profit and loss appropriation account to his partner B:

Profit and Loss Appropriation  Account A/c
Particulars		Amount	Particulars	Amount
To Interest on capital			By Profit for the year	1,00,400
A	9,600
B	4,800	14,400
To A’ s Salary		4,800
To Interest on B’s Loan		7,200
To Net profit transferred to Capital a/cs
-A (4/7)	17,600
-B (3/7)	13,200	30,800
		1,00,400		1,00,400

There is no partnership deed. B feels that he has not been treated fairly. Point out whether A has contravened the provisions of law and draw out new profit and loss appropriation account as per provisions of Indian Partnership Act.

 

The solution of Question 04 Chapter 2 of +2 Part-1

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Profit and Loss Appropriation Account A/c
Particulars		Amount	Particulars		Amount
To Interest on B’s Loan @6% p.a.		7,200	By Profit for the year		1,00,400
To Net profit transferred to Capital a/cs
-A (1/2)	46,600
-B (1/2)	46,600	93,200
		1,00,400			1,00,400

Note: 1) A is not entitled to a salary in absence of any agreement.
2) Partners are not entitled to any interest on capital.
3) In the absence of any agreement, profits should be distributed equally.

 

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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 (Introduction)
• Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
• Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
• Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
• Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
• 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
• Chapter No. 2 – Financial Statement Analysis
• Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size
• Chapter No. 4 – Ratio Analysis
• Chapter No. 5 – Cash Flow Statement

 

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