Question 15 Chapter 2 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 15 Chapter 2 of +2-A

Question 15 Chapter 2 of +2-A

15. Bhanu and Partab are partners sharings profits equally. Their fixed capitals as on 1st April, 2018 are ₹ 8,00,000 and ₹ 10,00,000 respectively. Their drawings during the year were ₹ 50,000 and ₹ 1,00,000 respectively. Interest on Capital is a charge and is to be allowed @ 10% p.a. and interest on drawings is to be charged @ 15% p.a. Net Profit for the year ended 31st March, 2019 was ₹ 1,20,000.
Prepare Profit and Loss Appropriation Account.

The solution of Question 15 Chapter 2 of +2-A

Profit and Loss Appropriation Account A/c
for the year ended 31st March 2019
Particulars
Amount Particulars
Amount
To Interest on Capital A/c *1     To Profit and Loss A/c   1,20,000
Prem’s Capital 80,000   To Interest on Drawing A/c *2    
Manoj’s Capital 1,00,000 1,80,000 Bhanu’s Capital 3,750  
      Partap’s Capital 7,500 11,250
      To Bhanu’s Capital A/c   1,675
      48,750 × 1/2 24,375  
      To Partap’s Capital A/c    
      48,750 × 1/2 24,375 48,750
    1,80,000       1,80,000

Working Note: –

*1: -Calculation of Total Interest on Bhanu’s Capital and Partap’s Capital
Interest on Capital = Capital X Rate of Interest X Period
Bhanu’s Capital = 8,00,000
Rate of Interest = 10%
Period = Whole year(So we don’t need to add period in the formula)
= 18,00,000 X 10/100
Total Interest on Bhanu’s Capital = 80,000/-

Partap’s Capital = 10,00,000
Rate of Interest = 10%
Period = Whole year(So we don’t need to add period in the formula)
= 10,00,000 X 10/100
Total Interest on Partap’s Capital = 1,00,000/-

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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

 

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2 Book 1 min - Question 15 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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