Question 14 Chapter 2 of Class 12 Part - 1 VK Publication

Question 14 Chapter 2 of Class 12 Part – 1

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The solution of Question 14 Chapter 2 of Class 12 Part – 1: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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14. P, Q and R are partners in a business and on 1st April, 2017 their capitals were Rs. 20,000, Rs. 12,500 and Rs. 10,000 respectively. According to the partnership deed, each partner was entitled to interest on capitals at 5% and to a salary of Rs. 750 p.a. Of the net divisible profits P is entitled to 40%. Q to 30% and R to 30% of the first Rs. 2,000. Over this amount profit were shared equally.
The Profit and Loss Account for the year ended 31st March, 2018, before charging te on capital and partners’ salaries disclosed a net profit oRs.8,375. Prepare the Partners’ Capital Accounts and make out the Profit and Loss Appropriation Account, showing partner’s position on 31st March, 2018.

The solution of Question 14 Chapter 2 of Class 12 Part – 1: –

Profit and Loss Appreciation Account

(For the year ended 31st March, 2017)

Particulars		Amount	Particulars	Amount
To Interest on Capital A/c:			By Profit and Loss A/c	8,375
P	1,000
Q	625
R	500	2,125
To Partner’s Salary A/C
P	750
Q	750
R	750	2,250
To Profit Transferred To Capital A/C’s
P	1,466
Q	1,267
R	1,267	4,000
		8,375		8,375

Partner’s Capital Account

Particulars	P Rs.	Q Rs.	R Rs.	Particulars	P Rs.	Q Rs.	R Rs.
To Balance c/d	23,216	15,142	12,517	By Balance b/d	20,000	12,500	10,000
				By Interest on Capital	1,000	625	500
				By Salaries A/c	750	750	750
				By P & L App. A/c	1,466	1,267	1,267
	23,216	15,142	12,517		23,216	15,142	12,517