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Question 04 Chapter 2 of +2-Part-1
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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 : –
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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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