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

Question 04 Chapter 2 of +2- Part-

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

: – 

 

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
  • 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 04 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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