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

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

Question 14 Chapter 2 of Class 12 Part – 1

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

Working Notes;

 Distribution of Profit P (Rs.) Q (Rs.) R (Rs.) Upto Rs. 2,000 800 600 600 Remaining Rs. 2,000 in equal ratio 666 666 666 1,466 1,267 1,267

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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)

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)

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