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

Question 12 Chapter 2 of +2-A
Question No.12 - Chapter No.2 - T.S. Grewal +2 Book 2019-Solution

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Question 12 Chapter 2 of +2-A

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12. X and Y are partners sharing profits in the ratio of 3: 2 with capitals of ₹ 8,00,000 and ₹ 6,00,000 respectively. Interest on capital is agreed @ 5% p.a. Y is to be allowed an annual salary of ₹ 60,000 which has not been withdrawn. Profit for the year ended 31st March 2019 before interest on capital but after charging Y’s salary amounted to ₹ 2,40,000.

The solution of Question 12 Chapter 2 of +2-A: 

Profit and Loss Adjustment Account A/c
for the year ended 31st March 2019
Particulars
AmountParticulars
Amount
To Manager’s Commission15,000By Profit and Loss A/c2,40,0003,00,000
 (3,00,000×5%) Add: Y’s salary60,000 
To Profit and Loss Appropriation A/c (B. fig)2,85,000   
 4,00,000   4,00,000

 

Profit and Loss Appropriation Account A/c
for the year ended 31st March 2019
Particulars
AmountParticulars
Amount
To Y’s Salary A/c 60,000By Profit and Loss Adjustment Account A/c2,85,000
To Interest on Capital A/c *1    
X’s Capital40,000   
Y’s Capital30,00070,000
  
To X’s Capital A/c 93,000
  
1,55,000 × 3/5    
To Y’s Capital A/c 62,000
  
1,55,000 × 2/5    
  2,85,000  2,85,000

Working Note: –

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*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

X’s Capital = 8,00,000
Rate of Interest = 5%
Period = Whole year(So we don’t need to add period in the formula)
= 8,00,000 X 5/100
Total Interest on X’s Capital = 40,000/-
Y’s Capital = 6,00,000
Rate of Interest = 5%
Period = Whole year(So we don’t need to add period in the formula)
= 6,00,000 X 5/100
Total Interest on Y’s Capital = 30,000/-

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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
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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