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Question 1 Chapter 2 of Class 12 Part – 1 VK Publication

Question 1 Chapter 2 of Class 12 Part - 1 VK Publication
Question 1 Chapter 2 of Class 12 Part - 1 VK Publication

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Question 44 Chapter 1 of Class 12 Part – 1

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1. Om Parkash and Som Parkash commenced business in partnership on 1st April, 2017. No agreement was made either oral or written. They contributed Rs. 20,000 and Rs. 15,000 respectively as capital. On 1st October, 2017 Om Parkash advanced to the firm Rs. 10,000 as loan.
On 15th November, 2017 Om Parkash met with an accident and could not attend the partnership business up to 15th February, 2018. The firm made a profit of Rs. 8,300 for the year ended 31st March, 2018, prior to the following claims, disputes having arisen between them for sharing profits:
Om Parkash Claims: (i) Interest on capital and on loan @10% p.a. (ii) Profit sharing in capital ratio.
Som Parkash Claims: (i) Profit sharing in equal ratio.
(ii) He should be allowed salary of 1,000 p.m. for the period of Om Parkash’s illness.
(iii) Interest on capital and on loan should be given only @6% p.a.
You are required to settle the dispute between them and distribute the profits according to the provisions of Partnership Act. State reasons for your answer.

The solution of Question 1 Chapter 2 of Class 12 Part – 1: –

Om Prakash’s claims are not valid because:
(i) Interest on capital is not provided in the absence of in the absence of partnership deed and interest on loan is to be provided @6% p.a.
(ii) Profit sharing should be in equal ratio in the absence of partnership deed.
Som Prakash’s claims
(i) Profit-sharing in equal ratio- he is right in his claim.
(ii) No salary will be allowed to partners in the absence of partnership deed
(iii) Interest on capital is not provided in the absence of deed. Interest on loan is to be provided 6% p.a.
The appropriate Profit and Loss Appropriation Account is given below:

Profit and Loss Appreciation Account

For the year ended on 31st March, 2017

Particulars AmountParticulars
 
Amount
To Profit Transferred to Capital A/c’s By Profits and loss A/c : 
Om Prakash4,000[ 8,300 – 300 ( Interest on Om Prakash Loan for 6 months @ 6% p.a.0]8,000
Som Prakash4,000  
 8 ,000 8 ,000

 

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Also, Check out the solved question of all 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)

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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)

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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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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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