Question 10 Chapter 2 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 10 Chapter 2 of +2-A

Question 10 Chapter 2 of +2-A

10. A and B are partners. A’s Capital is ₹ 1,00,000 and B’s Capital is ₹ 60,000. Interest on capital is payable @ 6% p.a. B is entitled to a salary of ₹ 3,000 per month. Profit for the current year before interest and salary to B is ₹ 80,000.
Prepare Profit and Loss Appropriation Account.

The solution of Question 10 Chapter 2 of +2-A

Profit and Loss Appropriation Account A/c
for the year ended 31st March 2019
Particulars
Amount Particulars
Amount
To Salaries A/c (3000 X 12) 36,000 By Profit and Loss A/c (Net Profit) 80,000
To Interest on A’s Capital *1 6,000    
To Interest on B’s Capital 3,600    
To A’s Capital A/c
17,200
   
34,400 × 1/2      
To B’s Capital A/c      
34,400 × 1/2 17,200    
  80,000     80,000

Working Note: –

*1: -Calculation of Total Interest on X’s Capital, Y’s Capital and Z’s Capital
Interest on X’s Capital = Capital X Rate of Interest X Period
Capital = 1,00,000
Rate of Interest = 6%
Period = Whole year(So we don’t need to add period in the formula)
= 1,00,000 X 6/100
Total Interest on A’s Capital = 6,000/-
Capital = 60,000
Rate of Interest = 6%
Period = Whole year(So we don’t need to add period in the formula)
= 60,000 X 6/100
Total Interest on B’s Capital = 3,600/-

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

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

 

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

2 Book 1 min - Question 10 Chapter 2 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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